Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?

Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?    A.  increase in the amount of the quarterly dividend B.  decrease in the per unit production costs C.  increase in the number of shares outstanding D.  decrease in the net working capital E.  increase in the market value per share Refer to section 1.3

39.

Why should financial managers strive to maximize the current value per share of the existing stock?    A.  doing so guarantees the company will grow in size at the maximum possible rate B.  doing so increases employee salaries C.  because they have been hired to represent the interests of the current shareholders D.  because this will increase the current dividends per share E.  because managers often receive shares of stock as part of their compensation Refer to section 1.3

40.	Decisions made by financial managers should primarily focus on increasing which one of the following?    A.  size of the firm B.  growth rate of the firm C.  gross profit per unit produced D.  market value per share of outstanding stock E.  total sales Refer to section 1.3

41.	The Sarbanes-Oxley Act of 2002 is a governmental response to:    A.  decreasing corporate profits. B.  the terrorists attacks on 9/11/2001. C.  a weakening economy. D.  deregulation of the stock exchanges. E.  management greed and abuses. Refer to section 1.3

42.

Which one of the following is an unintended result of the Sarbanes-Oxley Act?    A.  more detailed and accurate financial reporting B.  increased management awareness of internal controls C.  corporations delisting from major exchanges D.  increased responsibility for corporate officers E.  identification of internal control weaknesses Refer to section 1.3