CHƯƠNG 1

1.A corporation may incur agency costs because:

a. Of the separation of ownership and management.
b.Shareholders incur monitoring costs.
c. Managers may not attempt to maximize the value of the firm to shareholders.
d.All of the responses are correct.

2. A firm's investment decision is also called its

a. capital budgeting decision.
b. liquidity decision.
c. leasing decision.
d.financing decision.

3. Costs associated with the conflicts of interest between the managers and the shareholders of a
corporation are called:
a.administrative costs.
b.bankruptcy costs.
c.legal costs.
d.agency costs.

4. Generally, a corporation is owned by its

a.managers, board of directors, and shareholders.
b.managers.
c.shareholders.
d.board of directors and shareholders.

5. In the principal-agent framework:

a.managers are the principals.
b.shareholders are the principals.
c.managers are the agents.
d.shareholders are the principals and managers are the agents.

6. Limited liability is an important feature of:

a.corporations.
b.partnerships.
c.both partnerships and corporations.
d.sole proprietorships.

7. Shareholders of a corporation may be, among others,

a.individuals and pension funds.
b.individuals, pension funds, and insurance companies.
c.pension funds.
d.individuals.

8. The choice of the proper mixture of debt and equity, used to finance a corporation, is also referred
to as the
a.capital budgeting decision.
b.investment decision.
c.liquidity decision.
d.capital structure decision.

9. The financial goal of a corporation is to:

a. maximize managers' benefits.
b.maximize sales.
c.maximize profits.
d. maximize the value of the firm for the shareholders.

10. The following are examples of real assets:

a. common stock only.
b. machinery only.
c. machinery, office buildings, and warehouses only.
d. machinery and office buildings only.

11. The following are examples of tangible assets except:

a. training courses for employees only.
b. machinery, office buildings, and warehouses only.
c. machinery only.
d. machinery and office buildings only.

12. The sale of financial assets by a corporation is also referred to as the

a. CFO decision.
b. capital budgeting decision.
c. financing decision.
d. investment decision.

13. The ultimate financial goal of a corporation is to:

a.increase size of the firm.
b.maximize the value of the corporation to the stockholders.
c.minimize stockholder risk.
d.maximize profit.

14. A corporation has a legal existence of its own and is based on "articles of incorporation."
Đúng
Sai

15. Managers, shareholders, and the firm's debtholders have identical information about the value of
the firm.
Đúng
Sai

CHƯƠNG 2