Question:

Answer: A.

The​ owners’ liability is limited to the amount of their investment in the company.

B.

Corporations have a greater ease in raising large sums of money than other forms of business organization.

C.

The life of the business is not tied to the status of the corporate owners.

Question: In a large corporation the primary responsibility for overseeing the​ firm’s finance-related activities falls to​ the: ​(Select the best choice​ below.)

A.

Vice President for Production and Operations.

B.

Board of directors.

C.

Chief Executive Officer​ (CEO).

D.

Vice President for Marketing.

E.

Chief Financial Officer​ (CFO).

Answer: E.

Chief Financial Officer​ (CFO).

Question:

Answer: E.

All of the above are correct.

Question:

Answer: D.

Principle​ 4: Market prices reflect information.

Question: Which of the following statements best represents what finance is​ about?

A.

Maximizing profits

B.

The study of how people and businesses make investment decisions and how to finance those decisions.

C.

How​ political, social, and economic forces affect corporations

D.

Reducing risk

Answer: B.

The study of how people and businesses make investment decisions and how to finance those decisions.