Corps Issuers Quiz

At which stage is the company first likely to consider an initial public offering?

A.Growth.

B.Start-up.

C.Maturity.

A sole proprietorship has the following characteristic…….

A. Profits are taxed with business taxes.

B. Growth is limited to the owner’s ability to raise funds personally.

C. Owner’s losses are limited to what they invested in the business.

At which structure business profits are most likely to be taxed twice?

A. General partnership.

B. Corporation.

C. Limited partnership.

Unlimited liability for the providers of finance to the business mostly is found in……

A.Limited partnership.

B.General partnership.

C.Corporation.

When investor X is considering the size of a company’s free float. The company is described as a:

A. Public company.

B. Private limited company.

C. Public limited company.

Regarding the relationship between a company & its stakeholders, the conflict between lenders & owners is best described by:

A. Stockholders prefer riskier projects.

B. Lenders prefer greater leverage.

C. Lenders have more upside potential.

A potential conflict that is least likely an example of a principal-agent relationship?

A. Directors being influenced by managers.

B. Excessive remuneration of senior managers.

C. A controlling shareholder agreeing the sale of just their shares.

Stranded asset most likely relates to:

A. Governance issues.

B. Environmental issues.

C. Social issues.

Project X has no IRR

A. creates a problem that is more serious than the multiple-IRR problem.

B. is a bad investment based on the NPV rule.

C. may have all cash flows in a single direction.

A capital allocation pitfall is…..

A.Using a highly bespoke template.

B.Ignoring how competitors may react to a project.

C.Including overheads in cash flow calculations.

The statement that is not correct is:

A. NPV can be negative even if the IRR is positive.

B. Regarding mutually exclusive projects, if the NPV and IRR method give conflicting rankings, the IRR method should be used.

C. if IRR = the cost of capital, NPV is zero.

A benefit of ROIC over NPV is that:

A. It is backward-looking and potentially volatile.

B. It is based on public accounting data.

C. The metric allows for each project to be assessed independently.

If a firm undertakes investment projects with an NPV of zero, it most likely:

A.Increases its opportunity cost.

B.Decreases its stockholders’ wealth.

C.expand its size.

A pull on liquidity is not be associated with:

A.Inventory becoming obsolete.

B.Making payments to creditors early.

C.Reduction of existing credit limit.

………is / are a primary source of liquidity

A.Tradeable securities.

B.Negotiation of debt agreements.

C.Sale of long-term assets.

Which of the following actions by a company is most likely to increase its cash conversion cycle?

A.Reduce the level of early payment discounts offered to customers.

B.Negotiate longer payment terms with suppliers.

C.Move to a just-in-time inventory system.

Firm X increases inventory levels using cash. What would be the impact on the current ratio and the quick ratio?

A.Both ratios would increase.

B. quick ratio would decrease, but the current ratio would not be affected.

C. current ratio would increase, but the quick ratio would not be affected.

A direct sales strategy is not for a manufacturer of:

A.Medical devices.

B.Office consumables.

C.Luxury goods.

A company prices its goods on the basis of its customers’ opportunity costs. This pricing model is most likely to be described as:

A. Tiered pricing.

B. Reverse auction pricing.

C. Value-based pricing.

A simulated game on an attractive online application offers users free access to play. This is not likely to be an example of which pricing model?

A. Hidden revenue.

B. Freemium pricing.

C. Penetration pricing.

Corps Issuers Quiz

mohab2056@gmail.com November 22, 2024

Quiz Summary

Information

Results

Results

Categories

1. Question

2. Question

3. Question

4. Question

5. Question

6. Question

7. Question

8. Question

9. Question

10. Question

11. Question

12. Question

13. Question

14. Question

15. Question

16. Question

17. Question

18. Question

19. Question

20. Question

Explore

Follow Us

Get In Touch

Average score
Your score