Understanding Business Finance

Johanna asked:


1) Marginal analysis states that financial decisions should be made and actions taken only when
A) demand equals supply.
B) benefits equal costs.
C) added benefits exceed added costs.
D) added benefits are greater than zero.

2) The primary goal of the financial manager is
A) minimizing risk.
B) maximizing profit.
C) maximizing wealth.
D) minimizing return.
3)One way often used to insure that management decisions are in the best interest of the
stockholders is to
A) threaten to fire managers who are seen as not performing adequately.
B) remove management’s perquisites.
C) tie management compensation to the performance of the company’s common stock
price.
D) tie management compensation to the level of earnings per share
4) The Sarbanes-Oxley Act of 2002 did all of the following EXCEPT
A) tighten audit regulations and controls.
B) toughen penalties against overcompensated executives.
C) toughen penalties against executives who commit corporate fraud.
D) All of the above are true.
5) Net profits after taxes are defined as
A) gross profits minus operating expenses.
B) sales revenue minus cost of goods sold.
C) EBIT minus interest.
D) EBIT minus interest and taxes.

Frankie

One Response to “Business finance?”

1. William C. Says:
   July 16th, 2011 at 7:36 pm

   Great, thanks for asking