finance MCQs

Maximizationofshareholderwealthasagoalissuperior  toprofitmaximiza- tionbecause:

a.    itconsidersthetimevalueofthemoney.

b.   followingthegoalofshareholderwealthmaximization  willensure  highstock prices.

c.    itconsidersuncertainty. d.    AandC

2)    WhichofthefollowingisNOTtrueforalimited  partnership?

a.    Limitedpartnersmayselltheirinterestinthecompany. b.    Limitedpartnerscanonlymanage  thebusiness.

c.    Onegeneral  partner  must  existwhohasunlimitedliability.

d.    Onlythename  ofgeneral  partnerscanappear  inthename  ofthefirm.

3)    Revenues  aretaxed

a.    toachieve  sociallydesirablegoals.

b.    toproviderevenues  forgovernment  expenditures. c.    foreconomic  stabilization.

d.    alloftheabove

4)    Whichofthefollowingcategoriesofownershaveunlimitedliability?

a.    general  partnersinalimited  partnership b.    soleproprietors

c.    shareholdersofacorporation d.    bothAandB

5)   EmeryInc.had$5  millionofgrossincome,  operating  expensesof$1  million, paid$1  millionofinterestonborrowingof$10 million,andpaidadividend

of$0.50 million.EmeryInc.’staxable  income  is

a.    $4  million. b.    $3  million.

c.    $3.5million. d.    $2.5million.