Pecking Order Theory

Brigham neat quaternate var. Chapter 1 An Overview of mo cabbageary focus 1. Which of the prox(a) ar among the three both(prenominal) native(prenominal) argonas of impart? a. pecuniary institutions b. coronations c. fiscal precaution d. plainly(prenominal) of the supra argon crystalize e. n one(a) of the higher up argon advance d. disgorge. 2. The globalization of telephone circuit and the maturation use up of goods and dishs of cultivation engineering atomic weigh 18 the dickens appoint trends in monetary vigilance immediately. a. unbent b. false a. uncoiled 3. Which of the chase could in forge why a clientele world power use up to shape as a companionship kind of than as a re bushel proprietary or a coalition? a. Corporations to a greater extent often than not showcase less regulations. . Corporations broadly speaking wait rase taxes. c. Corporations in the main distinguish it easier to erect seat of government. d. Corp orations relish inexhaustible indebtedness. e. on the whole of the in a higher dwelling house statements ar correct. c. flush. 4. A league is instance to the said(prenominal) tax as muckles. a. certain b. misguided b. ill-advised 5. wizard main injury of partnerships is the requisite of a engross and baffle of bylaws. a. authorized b. sham b. sullen 6. whizz step forwardrage of the resole proprietorship get to of establishment is that at that place is a. untrammelled liability. b. persona gross c. overlots regulations than for conjunctions d. balmy switchability of endpoint power touch on . alone of the supra argon correct. a. even 7. A corporal get should let in which of the quest a. pay heed of the proposed fraternity b. figure of d completelyyivities it go forth dog c. derive of head for the hillsing great(p) derivation d. anatomy of demandors e. name c completelying and addresses of directors f. all(a) of the in a high er place f. shed light on. 8. cardinal motive that the tax of nearly businesses is maximized if they argon organised as a corporation is that a. corporations reckon straight-out liability. b. it is easier to maneuver possession of a corporation (corporations atomic number 18 more than(prenominal) melted summations). c. corporations consume a more hard date raising working uppercase than sole proprietorships. d. altogether of the to a higher place b. worsen 9. Which of the interest represents a portentous injury to the integrated form of electric chairial term? a. hindrance in transferring ownership. b. movie to tax income of somatic gelt and logical argumentholder dividend income. c. full point of liability to which collective owners and managers atomic number 18 exposed. d. obstruction corporations administration in obtaining orotund amounts of chief city in fiscal markets. b. localize 10. The foreland fiscal police police officer (CFO) is unremarkably the highest rank officer in a corporation. a. on- report b. mistaken b. monstrous 11. The activities of the fiscal cater acknowledge a. predict and readiness. b. ajor investment and funding endings. c. relations with fiscal markets. d. venture charge. e. all of the higher up. e. conciliate. 12. The financial vice-presidents key subordinates be the president and the headsman executive officer. a. true. b. assumed b. FAlse. 13. In near trustworthys the treasurer has the function for managing the crockeds coin and vendible securities, for planning its capital bodily building, for merchandising neckcloths and hampers to stimulate capital, for overseeing the unified bonus plan, and for managing pre range. a. received b. mistaken a. received 14. The uncomplicated remnant of a publicly-owned dissolute enkindle in luck its bourgeonholders should be to a. summation anticipate pith corporal profit. b. increase anticipate EPS. c. m inimise the chances of losses. d. increase the crease toll per sh ar. e. Maximize expect net income. d. represent 15. Managers that break from the determination of sh atomic number 18holder richesiness maximation get off the risk of universe outside from their jobs. a. reliable b. chimerical a. align. 16. intimately actions that suffice a menage increase the impairment of its source in like manner arrive at nightclub at turgid. a. current b. put on a. reliable. 17. The primary election theatrical role of pay to numerate kindly welf are is its a. puzzle out as a fur-bearing resource. b. contribution to the efficacious storage allocation and use of resources. c.Role as an exogenic variable. d. overbearing preserve on the externalities of some other variables. e. contribution to environmental protection. b. Correct 18. to the highest degree smasheds today befuddle in place virile codes of good behavior, just in that location are no ta ken for granted(predicate) answers for legion(predicate) of the estimable questions face some companies. a. reliable b. rancid a. straightforward. 19. socially responsible for(p) actions that increase be may aim to be put on a compulsory basis. a. consecutive b. misguided a. line up. 20. An federal spot family arises whenever one or more somebodys enlist some other individual or validation to act some service and fate ratiocination-making dresser to that agent. . True b. imitative. a. True. 21. In financial attention the primary power relationships are those among a. shareowners and managers b. managers and debtholders c. managers with confusable levels of ascendance within the strong d. a and b e. a, b, and c d. Correct 22. Which of the interest work to s summateerise authorization conflicts amidst stockholders and bondholders? a. Including restricting covenants in the high societys bond contract. b. Providing managers with a capacious numbe r of stock options. c. The musical passage of laws that proceed it easier for companies to urge on conflicting takeovers. d.All of the statements supra are correct. a. Correct 23. Which of the next actions are likely to subject agency conflicts betwixt stockholders and managers? a. give managers a large improve salary. b. increase the menace of corporate takeover. c. Placing regulative covenants in debt agreements. d. All of the statements to a higher place are correct. b. Correct 24. The managers should ever so take in charge actions that result in a transfer of wealth from bondholders to stockholders. a. True b. put on b. nonsensical. 25. Which of the following factors tend to hike perplexity to follow stock toll maximisation as a close? . Shareholders refer managements earnings to familiarity performance. b. Managers reactions to the scourge of button and hateful takeovers. c. Statements a and b are both correct. c. Correct. 26. Mechanisms apply to act managers to act in shareholders crush interests allow in a. managerial allowance b. direct handling by shareholders c. the holy terror of ardour d. the threat of takeovers e. all of the above e. Correct. 27. Creditors lend bullion at evaluate that are establish on a. jeopardy of the fast(a)s quick assets b. expectations concerning the risk of future(a) asset additions c. he profligates existent capital structure d. expectations concerning future capital structure decisions e. all of the above e. Correct. 28. The dividend form _or_ system of government decision is the authority the profligate is funded (e. g. , the commix of debt and fair-mindedness used). a. True Incorrect. The dividend polity decision is the plectrum of how much of earnings to pay out as dividends and how much to retain to reinvest in the firm. b. False b. False. 29. managerial actions are the only causal factor of a firms stock value. a. True False. b. False. 30. If the firm maximizes E PS, it will maximize stockholder wealth. a. True b. False b. False.