#1
Which of the following is an example of an internal stakeholder in an organization?
Customers
Suppliers
Employees
Competitors
#2
What is the primary objective of financial decision-making in organizations?
Maximizing shareholder wealth
Minimizing employee turnover
Increasing customer satisfaction
Expanding market reach
#3
What is the role of a bondholder in financial decision-making?
Providing equity capital to the company
Lending money to the company at a fixed interest rate
Managing day-to-day operations of the company
Purchasing goods and services from the company
#4
Which of the following is a characteristic of a sole proprietorship?
Limited liability for owners
Separation of ownership and management
Double taxation
Simplest form of business organization
#5
What is the purpose of a dividend policy in financial decision-making?
To maximize sales revenue
To minimize operating expenses
To determine the allocation of profits to shareholders
To reduce income taxes
#6
Which of the following is a characteristic of a limited liability company (LLC)?
Unlimited liability for owners
Separate legal entity from its owners
Publicly traded shares
Requires a minimum of three owners
#7
Which financial ratio measures a company's ability to pay its short-term debts?
Return on Investment (ROI)
Current Ratio
Debt-to-Equity Ratio
Earnings per Share (EPS)
#8
What does the term 'capital budgeting' refer to in financial decision-making?
Evaluating investments in long-term assets
Managing day-to-day expenses
Calculating employee salaries
Assessing marketing strategies
#9
What does the term 'financial leverage' refer to in financial decision-making?
The ability to quickly convert assets into cash
The use of debt to increase the return on equity
The process of diversifying investment portfolios
The allocation of funds for capital expenditures
#10
Which financial statement provides a snapshot of a company's financial position at a specific point in time?
Income Statement
Statement of Cash Flows
Balance Sheet
Statement of Retained Earnings
#11
What does the term 'cost of capital' represent in financial decision-making?
The expenses incurred in marketing and advertising
The total amount of debt a company has
The required rate of return on investment
The amount of money in the company's bank account
#12
Which financial ratio measures the efficiency of a company's operations in generating profits from its resources?
Return on Assets (ROA)
Debt-to-Equity Ratio
Earnings per Share (EPS)
Price-Earnings (P/E) Ratio
#13
Which financial theory suggests that the value of a firm is determined by its future earnings?
Efficient Market Hypothesis
Capital Asset Pricing Model (CAPM)
Modigliani-Miller Theorem
Dividend Irrelevance Theory
#14
According to stakeholder theory, which group should a company prioritize in decision-making?
Only shareholders
Only customers
All stakeholders, including shareholders, employees, customers, and the community
Government regulators
#15
In stakeholder analysis, which of the following is NOT typically considered a stakeholder?
Shareholders
Competitors
Employees
Government agencies
#16
According to stakeholder theory, what is the primary responsibility of a corporation?
Maximizing shareholder wealth
Maximizing profits
Creating value for all stakeholders
Minimizing expenses
#17
In stakeholder theory, which group is considered the primary stakeholder of a corporation?
Employees
Customers
Shareholders
Competitors