Examen 1. Etapa 1 Corporate Finance

Compared with a public limited company, a private limited company most likely has a greater:

Which of the following is most likely a disadvantage of using a private limited company rather than a public limited company as an organizational form?

The owners of a general partnership are considering converting it into a corporation to raise new capital. From their perspective, a likely disadvantage of this change is:

A distinctive feature of the corporation as an organizational form is most accurately:

A company’s free float is most accurately defined as:

With respect to the firm’s risk, the interests of shareholders and debtholders most likely differ in that:

Which of the following is most likely a stakeholder of the firm but NOT a provider of financial capital?

The principal-agent problem between shareholders and managers arises most accurately because:

A voting common share grants its holder most accurately:

Corporate governance is most accurately described as:

In a firm with a controlling shareholder, a typical governance conflict is most likely between:

A board of directors with a majority of independent directors contributes to good governance most likely because it:

Weak corporate governance most likely exposes the firm to:

Which of the following would most likely be classified as a SECONDARY source of liquidity?

A company has a days of inventory on hand (DIO) of 50 days, a days sales outstanding (DSO) of 40 days, and a days payables outstanding (DPO) of 30 days. Its cash conversion cycle is approximately:

A company has current assets of $600 million and current liabilities of $300 million. Its current ratio is approximately:

A company has current assets of 600 (of which 240 is inventory) and current liabilities of 300, in $ millions. Its quick ratio (acid test) is approximately:

An analyst claims that financing with accounts payable and with equity is ‘free’ because neither carries an explicit interest rate. This claim is most accurately:

Compared with a common shareholder, a preferred shareholder most likely:

In a limited partnership, relative to a general partnership, the limited partners most accurately: