Examen 2. Etapa 1 Corporate Finance

An advantage of the corporate form relative to a sole proprietorship is most likely:

A concentrated ownership structure (a single shareholder or group with control), relative to a dispersed one, is most likely associated with:

Compared with debt financing, equity financing most accurately:

Suppliers, as stakeholders of a company, are most likely interested in:

A typical example of an agency conflict between managers and shareholders is most likely:

The government, as a stakeholder of a company, most likely has an interest in:

The board’s audit committee, under good governance, is most accurately responsible for:

Manager compensation linked to long-term performance (e.g., shares with vesting periods) most accurately aims to:

An unmonitored related-party transaction represents a governance risk most likely because it:

ESG (environmental, social, and governance) factors, in investment analysis, are most accurately considered:

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

A company has credit sales of $1,000 million and an average accounts receivable balance of $125 million. Its receivables turnover is approximately:

A ‘drag on liquidity’ most accurately occurs when:

A company has $90 million in cash and marketable securities and current liabilities of $300 million. Its cash ratio is approximately:

Stretching payment to suppliers to the last day permitted without penalty (managing payables) is most accurately:

The limited liability of a corporation’s shareholders most accurately means that:

Shareholder activism most accurately consists of:

Proxy voting most accurately allows:

In the liquidation of a firm, common shareholders most accurately:

Effective corporate governance most likely provides the firm with: