(A) financing decision
(B) WACC
(C) capital structure
(D) capital budgeting decision
The answer is: (D) capital budgeting decision
Author: CSS MPT
The corporation’s purchase of real assets is also known as
(A) capital structure decision
(B) CFO decision
(C) financing decision
(D) capital investment decision
The answer is: (D) capital investment decision
Which of the following is not an example of an investment decision?
(A) purchase of building
(B) construction of plant
(C) introduction of new service
(D) selling of shares
The answer is: (D) selling of shares
The sale of financial assets by a corporation is also known as
(A) investment decision
(B) financing decision
(C) capital budgeting decision
(D) capital expenditure decision
The answer is: (B) financing decision
Which of the following is not an example of a financing decision?
(A) bank loan
(B) selling of bonds
(C) selling of shares
(D) scaling the production capabilities
The answer is: (D) scaling the production capabilities
In a business partnership, partners are taxed on their share of the partnership’s income at their ________ income tax rates.
(A) corporate
(B) personal
(C) cost of equity
(D) cost of debt
The answer is: (B) personal
To carry out large businesses, usually ________ are formed.
(A) partnerships
(B) corporations
(C) associations
(D) sole proprietorships
The answer is: (B) corporations
The two principal corporate decisions are those relating to
(A) management and operations
(B) acquisitions and mergers
(C) investment and financing
(D) transactions and taxation
The answer is: (C) investment and financing
When a listed company seeks to raise capital through the issuance of new shares, it typically does so through
(A) loans
(B) dividends
(C) rights issue
(D) retained earnings
The answer is: (C) rights issue
The issuance of bonds by a corporation is a way of
(A) borrowing money
(B) investment
(C) saving money
(D) avoiding agency problem
The answer is: (A) borrowing money