Which one of the following correctly defines the upward chain of command in a typical corporate organizational structure?

  • The treasurer reports to the vice president of finance.

Which one of the following functions should be the responsibility of the controller rather than the treasurer?

  • daily cash deposit
  • income tax returns
  • equipment purchase analysis
  • customer credit approval
  • income tax returns
A stakeholder is:
  • any person or entity other than a stockholder or creditor who potentially has a claim on the cash flows of a firm.

Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?

  • agency problem

A business partner whose potential financial loss in the partnership will not exceed his or her investment in that partnership is called a:

  • limited partner.

A business formed by two or more individuals who each have unlimited liability for all of the firm’s business debts is called a:

  • general partnership.
A business owned by a solitary individual who has unlimited liability for its debt is called a:
  • sole proprietorship.
Which one of the following is defined as a firm’s short-term assets and its short-term liabilities?
  • working capital
Which one of the following terms is defined as the mixture of a firm’s debt and equity financing?
  • capital structure
Which one of the following terms is defined as the management of a firm’s long-term investments?
  • capital budgeting
The production function in the above table exhibits decreasing marginal returns to capital over what output range?
  • Between 2,391 and 3,048
The production function in the above table exhibits negative marginal returns to capital over what output range?
  • Between 3,016 and 2,945

The production function for good X in the above table exhibits increasing marginal returns to capital over what output range?

  • Between 0 and 1,524
In the short run, the marginal cost curve crosses the average total cost curve at
  • The minimum point of the average total cost curve

The point where diminishing marginal returns has begun to affect production, is best characterized by the point where the

  • Marginal product curve begins to be negatively sloped