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Exam Results Financial Management Exam Number 081773RR Grade 70 Date Graded 09/21/17 * * If your first attempt was below passing you will need to complete your retake or wait 30 days to see the correct responses. Correct exam answers will be made available to you when your lesson grade is finalized. Question Number Your Answer Answer Reference 1. D Correct 2. C Correct 3. A Correct 4. B C Section 1.5 5. D C Section 1.3 6. D Correct 7. A Correct 8. D Correct 9. D Correct 10. B C Section 1.1 11. C Correct 12. B Correct 13. A Correct 14. C A Section 1.3 15. B Correct 16. A Correct 17. C D Section 19.2 18. B D Section 1.4 19. D Correct 20. C Correct Questions Answered Incorrectly 4. Which of the following isnotone of the basic approaches used in monitoring company managers to minimize the impact of the agency problem? A. Make the managers owners B. Ignore it if the amount of money involved is negligible C. Appoint an ethics specialist to the board of directors D. Monitor managers’ actions Student Answer:B Answer:Incorrect Reference:Section 1.5 5. What type of business organization would give your investors limited liability but you, as the owner and operator, unlimited liability? A. Limited liability corporation (LLC) B. Corporation C. Limited partnership (LP) D. General partnership Student Answer:D Answer:Incorrect Reference:Section 1.3 10. Helping money flow from individuals who want to improve their financial future to businesses that want to expand the scale or scope of their operations relies on the successful application of A. economies of scale. B. financial management. C. financial theories. D. the time value of money (TVM). Student Answer:B Answer:Incorrect Reference:Section 1.1 14. A business structure designed to pass through income and avoid the double taxation associated with corporations while still offering limited liability is known as a A. hybrid organization. B. partnership. C. corporation. D. sole proprietorship. Student Answer:C Answer:Incorrect Reference:Section 1.3 17. Using the table below for spot and forward exchange rates, what should the six-month forward rate be for the Swiss franc if U.S. six-month interest rates are 0.22 percent and Swiss six-month rates are 0.18 percent? A. 1.0723 B. 0.9784 C. 1.0842 D. 1.0743 Student Answer:C Answer:Incorrect Reference:Section 19.2 18. Which of the followingbestexplains why minimizing costs has potentially serious shortcomings as a means of maximizing owners’ equity? A. Minimizing costs allows for the payment of larger dividends to company owners. B. It’s difficult to maximize market share without increasing spending. C. Spending lavishly can impress potential customers. D. Without spending money on R&D to improve its products, a firm won’t survive long in the constantly evolving economy. Student Answer:B Answer:Incorrect Reference:Section 1.4