1. Basic Concepts Aa Aa Match the terms relating to the basic terminology and co
ID: 1172268 • Letter: 1
Question
1. Basic Concepts Aa Aa Match the terms relating to the basic terminology and concepts of corporate finance on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term Term Answer Description A This state-created entity is authorized to conduct business and offer its owners an investment with an unlimited life This primary goal of financial management is evaluated by the effect of a decision or an action on the value of the fim. This corporate officer is responsible for managing the firm's cash and short-term investments, pension fund, and risks. Corporation B. Treasurer C. Limited liabilityD. This code of behavior specifies how the firm and its employees will treat employees and stakeholders. Business ethicsE. An investor's personal responsibility for the business's liabilities can never be less than zero or more than the amount invested in the firm's common shares. Limited partner F. This general term is given to an individual or a group that has an interest in, or is affected by, a business. Double taxation of G. It deals with obtaining the right amount of money from the right sources dividends at the right time, where "right" is determined by how the amounts, sources, and times affect the value of the individual or organization. Shareholder wealth maximization H. This is the present worth of the future cash flows generated by an asset or firm, discounted at a rate appropriate for the riskiness of the cash flows. Stakeholder I. The U.S. Internal Revenue Service taxes the taxable income of corporations as well as the taxable investment income of the firms . This member of a partnership has the privilege of not having personal Value assets at risk in the event of the failure of the partnership The chief financial officer in a company is responsible for which of the following departments? Check all that apply Capital budgeting Human resources Credit ? LegalExplanation / Answer
We need to match the terms with its most correct definition or description:
Finance – G. It deals with obtaining the right amount of money from right sources at the right time, where “right” is determined by how the amounts, sources and time affect the value of the individual or organization.
Corporation – A. This state created entity is authorized to conduct business and offer its owners an investment with an unlimited life
Treasurer – C. This corporate officer is responsible for managing the firm’s cash and short term investments, pension fund and risks.
Limited Liability – E. An investor’s personal responsibility for the business’s liability can never be less than zero or more than the amount invested in the firm’s common shares.
Business Ethics – D. Code of behavior specifies how the firm and its employees will treat employees and stakeholders
Limited Partner – J. This member of a partnership has the privilege of not having personal assets at risk in the event of failure of partnership.
Double Taxation of Dividend – I. The US IRS taxes taxable income of corporations as well as the taxable investment income of firm’s shareholders.
Shareholder Wealth Maximization – B. This primary goal of financial management is evaluated by the effect of a decision or an action on the value of the firm.
Stakeholder – F. This general term is given to an individual or a group that has an interest in, or is affected by, business
Value – H. This is the present worth of the future cash flows generated by an asset of the firm, discounted at a rate appropriate for the riskiness of cash flows.
Question2:
Answer is Capital budgeting
CFO is one of the senior executives within company's ranks and has significant input in the company's investments, capital structure and how the company manages its income and expenses. He is responsible for managing financial actions of the company. This related to capital budgeting decesion, as to where the company should invest money in to generate maximum returns.
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