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Answer True or False or select the right letter to the respective question. Thanks

1. The owners of a corporation enjoy unlimited liability.

True OR False

2. Which of the following is a characteristic of an efficient market?
a. Small number of individuals.
b. Opportunities exist for investors to profit from publicly available information.
c. Security prices reflect fair value of the firm.
d. Immediate response occurs for new public information.

3. According to the DuPont Analysis, an increase in net profit margin will decrease return on assets.

True OR False

4. The lower the average collection period ratio, the more efficient is the firm in managing its investment in accounts receivable.

True OR False

5. Which of the following is not a reason why financial analysts use ratio analysis?
a. Ratios help to pinpoint a firm's strengths.
b. Ratios restate accounting data in relative terms.
c. Ratios are ideal for smoothing out the differences that may exist when comparing firms that use different accounting practices.
d. Some of a firm's weaknesses can be identified through the usage of ratios.

6. A new issue of common stock is considered a primary market transaction in the money market.

True OR False

7. Activities of the investment banker include:
a. assuming the risk of selling a security issue.
b. selling new securities to the ultimate investors.
c. providing advice to firms issuing securities.
d. all of the above.

8. The percentages used in the percent-of-sales method comes from pro forma financial statements.

True OR False

9. The primary purpose of a cash budget is to:
a. determine the level of investment in current and fixed assets.
b. determine accounts payable.
c. provide a detailed plan of future cash flows.
d. determine the estimated income tax for the year.

10. The present value of the future sum of money is inversely related to both the number of years until payment is received and the opportunity rate.

True OR False

11. Assuming two investments have equal lives, a high discount rate tends to favor:
a. the investment with large cash flow early.
b. the investment with large cash flow late.
c. the investment with even cash flow.
d. neither investment since they have equal lives.

12. The degree of operating leverage applies to:
a. sales.
b. net income.
c. earnings per share.
d. all of the above.

13. Financing a portion of a firm's assets with securities bearing a fixed rate of return in hopes of increasing the return to stockholders refers to:
a. business risk.
b. financial leverage.
c. operating leverage.
d. all of the above.

14. The percent of sales method of forecasting assumes that fixed assets vary proportionately with sales.

True OR False

15. If profit margins increase as sales increase, the need for external finance is reduced.

True OR False

16. Whenever the IRR on a project equals that project's required rate of return, the NPV equals zero.

True OR False

17. A machine costs $1,000, has a three-year life, and has an estimated salvage value of $100. It will generate after-tax annual cash flows (ACF) of $600 a year, starting next year. If your required rate of return for the project is 10%, what is the NPV of this investment? (Round your answer to the nearest $10.)
a. $490
b. $570
c. $900
d. -$150

18. Working capital refers to investment in current assets, while net working capital is the difference between current assets and current liabilities.

True OR False

19. Which of the following best describes commercial paper?
a. Long-term promissory notes of large corporations that maintain high credit ratings
b. Short-term promissory notes of large corporations that maintain high credit ratings
c. Preferred stock of large corporations that maintain high credit ratings
d. All of the above
e. None of the above

20. Which of the following does not have an important direct effect on cash flow?
a. The payment patterns of customers
b. The time it takes for suppliers to process payments made by check
c. The ability of the banking system to process checks efficiently
d. The general direction of the Federal Reserve Board's interest rate policy

21. Which of the following is not a good reason for holding cash rather than marketable securities? Cash is held:
a. to meet daily business transaction needs.
b. to provide the CEO with a travel slush fund.
c. when yields on marketable securities are so low that brokerage costs would nearly eat up the entire yield.
d. to make the balance sheet look good.

22. As inflation increases, the cost of carrying inventory decreases.

True OR False

23. The main reason that firms lease is to provide them with a source of off-balance sheet financing.

True OR False

24. Which of the following is not an advantage of leasing for the lessee?
a. The lessor must bear the risk that the equipment will be obsolete even before it is returned at the end of the lease.
b. A lease usually has no restrictive financial covenants on the lessee; the primary duty is to make the lease payments on time.
c. The lessee must dispose of the equipment at the end of the lease.
d. An operating lease can lead to an income tax deduction of the entire lease payment.

25. Common stockholders bear more risk than debtholders but less risk than preferred stockholders.

True OR False

26. Which of the following provisions is unique to preferred stockholders and usually not available to common stockholders?
a. Cumulative dividends feature
b. Voting rights
c. Fixed dividend
d. Both a & c

27. Since depreciation is a sunk cost, it is not necessary to consider depreciation in estimating cash flows for a new capital project.

True OR False

28. NPV and IRR can provide ranking inconsistencies when projects have unequal lives.

True OR False

29. Which of the following would decrease free cash flows? A decrease in:
a. depreciation expense.
b. interest expense.
c. incremental sales.
d. both a & c.
e. all of the above.

30. The average cost of capital is the appropriate rate to use when evaluating new investments, even though the new investments might be in a higher risk class.

True OR False

31. As the tax rate increases, the weighted average cost of capital decreases.

True OR False

32. Cost of capital is:
a. the coupon rate of debt.
b. a hurdle rate set by the board of directors.
c. the rate of return that must be earned on additional investment if firm value is to remain unchanged.
d. the average cost of the firm's assets.

33. The objective of capital structure management is to maximize the market value of the firm's equity.

True OR False

34. Financial leverage is distinct from operating leverage since it accounts for the use of:
a. debt.
b. fixed operating costs.
c. preferred stock.
d. both a and c.
e. all of the above.

35. What price must a company typically pay to buy another company? The price will:
a. include some premium over the current market value of the target's equity.
b. be the market value of the target's equity.
c. be the book value of the target's equity.
d. include some discount relative to the current market value of the target's equity.

36. A merger that is driven by the potentially large reduction in the staffing of overlapping functions and the integration of the two companies' strong similar product lines is referred to as a:
a. conglomerate merger.
b. vertical merger.
c. horizontal merger.
d. diversification merger.

37. The major advantage of the forward market is risk reduction.

True OR False

38. Multinational corporations can have lower cost of capital and more continuous access to external finance compared to a domestic firm.

True OR False

39. A multinational corporation exposes the firm to the least amount of political risk with the use of:
a. import/export licenses.
b. licensing agreements.
c. joint ventures with foreign companies.
d. wholly-owned foreign subsidiaries.

40. The optimal capital structure involves
a. maximizing the cost of all funds
b. minimizing the cost of all funds
c. using no financial leverage
d. minimizing the weighted average of the cost of funds

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https://brainmass.com/business/leasing/multiple-choice-211892

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Solution Preview

Please see the attached file. All answers/explanations in blue

Answer True or False or select the right letter to the respective question. Thanks

1. The owners of a corporation enjoy unlimited liability.

True OR False

False - shareholders have limited liability

2. Which of the following is a characteristic of an efficient market?
a. Small number of individuals.
b. Opportunities exist for investors to profit from publicly available information.
c. Security prices reflect fair value of the firm.
d. Immediate response occurs for new public information.

3. According to the DuPont Analysis, an increase in net profit margin will decrease return on assets.

True OR False

False
ROA = Profit Margin X Asset Turnover
An increase in profit margin will increase ROA

4. The lower the average collection period ratio, the more efficient is the firm in managing its investment in accounts receivable.

True OR False

True - The average collection period represents the time taken to collect the receivables. If it is low, it implies efficient collection

5. Which of the following is not a reason why financial analysts use ratio analysis?
a. Ratios help to pinpoint a firm's strengths.
b. Ratios restate accounting data in relative terms.
c. Ratios are ideal for smoothing out the differences that may exist when comparing firms that use different accounting practices.
d. Some of a firm's weaknesses can be identified through the usage of ratios.

Ratios do not remove the differences, these have to be done separately and then the ratios should be calculated.

6. A new issue of common stock is considered a primary market transaction in the money market.

True OR False

False - it is a primary market transaction in the capital market. Money market deals with short term securities.

7. Activities of the investment banker include:
a. assuming the risk of selling a security issue.
b. selling new securities to the ultimate investors.
c. providing advice to firms issuing securities.
d. all of the above.

8. The percentages used in the percent-of-sales method comes from pro forma financial statements.

True OR False

False - the percentage comes from the current statements and are used to create the pro forma statements

9. The primary purpose of a cash budget is to:
a. determine the level of investment in current and fixed assets.
b. determine accounts payable.
c. provide a detailed plan of future cash flows.
d. determine the estimated income tax for the year.

10. The present value of the future sum of money is inversely related to both the number of years until payment is received and the opportunity rate.

True OR False

True = PV = FV/(1+rate)^n
If rate or period increases, the PV will reduce

11. Assuming two investments ...

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Amino acids multiple choice questions

Which statement is incorrect about the classification of amino acids?
a. Alanine and valine are neutral, nonpolar amino acids.
b. Lysine and arginine are basic amino acids.
c. Tryptophan and phenylalanine are aromatic amino acids.
d. Aspartic acid and aspargine are acidic amino acids.

Which of the following amino acids is the least water soluble at pH 7.0?
a. Tryptophan
b. Glutamic acid
c. Cysteine
d. Histidine

Which amino acid would migrate the furthest toward the anode (positive electrode) during paper electrophoresis at pH 7.0?
a. Aspartic acid
b. Alanine
c. Lysin
d. Glutamine

Which of the following functional groups, attached to an inert matrix, could function as a cation exchanger?
a. Diethylaminoethyl-
b. p-aminobenzyl-
c. Carboxymethyl-
d. Trimethylammonium-

Which of the following amino acids would make the best buffer at pH 4.5?
a. Histidine
b. Alanine
c. Glutamine
d. Aspartic acid

Which fact is incorrect about stereoisomers?
a. A diastereomer is a nonsuperimposable non-mirror image.
b. An enantiomer is a nonsuperimposible mirror image.
c. Diastereomers have different melting points.
d. Diastereomers rotate plane polarized light in equal but opposite direction.

Which statement is incorrect about L-isoleucine?
a. Its enantiomer is named O-isoleucine.
b. It contains a total of two asymmetric or chiral carbons.
c. It can also be named as (28, 38)-isoleucine using the (R,8) system.
d. Its diastereomer would be named O-alloisoleucine.

An isoelectric amino acid was dissolved in water and the resulting pH was approximately 7.6. What amino acid would possess this property?
a. Alanine
b. Glutamic acid
c. Histidine
d. Lysine

What volume of NaOH is required to adjust the solution of monosodium aspartate to pH 9.8?
a. 1 ml
b. 2 ml
c. 3 ml
d. 6 ml or more

What volume of 2 N Hel is required to completely titrate the 4 mmol of monosodium aspartate?
a. 2 ml
b. 3ml
c. Aml
d. 6 ml or more

Which statement is correct about the peptide ala-ser?
a. Alanine is at the N-terminal of the peptide.
b. There are a total six atoms that lie in the plane of the peptide bond linking alanine to serine.
c. The alpha-carbon of alanine is sp3 hybridized d All the above are correct statements.

What is the product formed from the acid hydrolysis of a simple amide?
a. Acid & base
b. Aldehyde & alcohol
c. Acid & amine
d. Ester & alcohol

The complete acid hydrolysis of the peptide ala-gln-trp-ser would yield:
a. Ala, gin, trp, ser
b. Ala, glu, ser
c. Ala, glu, trp, ser
d. Ala. ser

Fibrous proteins, such as collagen, have which of the following properties?
a. Highly soluble in water
b. Their hydrophilic residues are directed into the interior of the protein
c. Exhibit enzymatic activity
d. Serve structural roles in the cell

Quaternary structure is associated with:
a. The overall shape of a polypeptide chain
b. The sum of the secondary and tertiary interactions
c. Simple proteins with only one subunit
d. The relative orientation of one polypeptide to another polypeptide in a multi-subunit protein.

The information needed to define the structure of a protein is essentially contained in:
a. Amino acid composition
b. Amino acid sequence
c. Secondary structure
d. Tertiary structure.

Insulin is a polypeptide hormone that contains two short polypeptide chains linked by two interstrand disulfide bonds. The most logical order of events to perform in order to sequence this protein would be:
A: The peptides are reduced with mercaptoethanol.
B: The peptides are sequenced using Edman chemistry .
C: The peptides are separated by chromatography techniques. 0: The peptides are alkylated with iodoacetamide.
a. A, D,C, B b.C,A, 0, B
c. C, B, A, 0
d. A, B, C, 0

Which statement is incorrect about the peptide val-asp-trp-asn-ser?
a. This peptide would show a strong absorption band at 280 nm.
b. Reaction with chymotrypsin would yield two peptides.
c. To synthesize this peptide using the solid phase method of Merrifield, the amino acid directly attached to the resin would be serine.
d. After the second round of Edman chemistry using the reagent PITC, the PTH -amino acid residue released would be PTH-asn.

Which statement is incorrect about the reaction of the peptide ser-Iys-asp-trp-cys-metasn-phe-ala with the following reagents?
a. Reaction with cyanogens bromide would yield two peptides.
b. Reaction with trypsin would result in three peptides. The smallest of three peptides would have the highest pi of the three.
c. Reaciton with chymotrypsin would result in the peptides ser-Iys-asp & try-cys-met-Iysasn-phe-ala .
d. Reaction with chymotrypsin would yield a different set of peptides that overlap those obtained with tryspsin

Determine the amino acid sequence of the following oligopeptide from the experimental data below:
The amino acid composition is found the be ala, Iys, phe, met, cys plus some
decompsition products.
2. The peptide has a molecular weight around 700 Da and absorbs at 280 nm.
3. Treatment with carboxypeptidase results in tryptophan and a peptide.
4. CNBr treatment yields a tetrapeptide and a dipeptide.
5. Trypsine digestion produces an amino acid and a pentapeptide with met on the amino end.
6. Chymotrypsin digestion yields a dipeptide and a tetrapeptide.
a. trp-Iys-met-cys-met-ala
b. Iys-met-cys-phe-ala-trp
c. trp-ala-phe-cys-met-Iys
d. Iys-ala-cys-phe-met -trp

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