Reference no: EM131381270
Principles of Finance Module Quiz
1). Taxes provide an incentive to take on debt because interest paid on debt is a deductible expense for tax purposes, shielding income from taxation.
A) True
B) False
2). Firms have legal requirements to distribute funds to the owners in the form of cash dividends.
A) True
B) False
3). The uncertainity associated with the earnings from operations:
A) Financing Risk
B) Operating Risk
C)Sales Risk
D) Business Risk
4). The greater the ------- financing costs in the capital structure, the greater the leveraging effects on earnings to owners for a given change in operating earnings.
A) Operating
B) Variable
C) Fixed
D) Business
5). If firms earnings are insufficient to meet interest payments on debt obligations, a firm can obtain the necessary funds by taking any of the following EXCEPT:
A) Issuing more shares of stock
B) Purchasing additional income-generating plant and equiptment
C)Reducing assets by using working capital needed for operations or selling buildings or equipment
D) Taking on more debt obligations
6). What is the breakeven level of output when a product sells for $32, has variable costs per unit of $14 and the firm's total fixed costs are $18,000?
A) 1,000 units
B) 1,285 units
C) 562 units
D) 391 Units
7). Successful use of financial leverage can increase a firm's return on equity, however, a higher degree of financial leverage also increases the potential for loss.
A) True
B) False
8). Financial distress is the condition where a company makes decisions under pressure to satisfy its legal obligations to its shareholders.
A) True
B) False
9) A firm borrowed $600 of the $1,000 needed to begin operations. If net earnings are $25 for the first year of operation, what is the return on equity?
A) 4.17%
B) 1.56%
C) 2.50%
D) 6.25%
10). A firm should consider these factors when determining its capital structure:
A) Taxes, risk, sales volume and competition
B) Type of asset, financial slack, fixed costs and risk
C)Taxes, risk, type of assetand financial slack
D) Risk, sales volume, fixed costs and financial slack
Description of company- industry and incentive plan
: For this assignment, you are to use the text, the online library resources and the Internet to research the use of incentives in motivating employees. Find an organization with a form of incentive you consider highly motivating. Find an organiza..
|
Positive for e coli when cultured
: The UTI of a 32 yr. old pregnant female is found to be positive for E coli when cultured. How would you code this?
|
Research the grants evaluation process
: Research the grants evaluation process. Based on your research, respond to the following: Explain when the evaluation process begins and what it should entail in detail. Support your answer with examples
|
Explain whether mary is an independent contractor
: Little Lamb Company needs an additional programmer for a special project. The company enters into a contract with Mary to complete this project. Just as the project is nearing completion, a new need arises for her services. She is asked to continu..
|
What is the breakeven level of output when a product sells
: What is the breakeven level of output when a product sells for $32, has variable costs per unit of $14 and the firm's total fixed costs are $18,000?
|
Eliminate or worsen a disaster impacts
: Is it possible for mitigation activities to eliminate or worsen a disaster's impacts, and if so, how? Identify any factors that may impact those efforts, either negatively or positively.
|
Do all three prototypes have the same average range
: Do all three prototypes have the same average range? Construct an ANOVA table, and carry out the test. Explain your results.
|
Summarize the situation and identify any ethical dilemmas
: Summarize the situation, and identify any ethical dilemmas. Describe how you, as a human services professional, would approach this ethical dilemma while doing the following:Implementing the least intrusive intervention.Respecting confidentiality.Rec..
|
Role in organizational accidents
: Explain what factors can play a role in organizational accidents similar to the one highlighted in the scenario: How organizational processes give rise to potential failures?
|