The decision to issue additional shares of stock is an example of which one of the following?

The decision to issue additional shares of stock is an example of which one of the following?    A.  working capital management B.  net working capital decision C.  capital budgeting D.  controller's duties E.  capital structure decision Refer to section 1.1

18.	Which of the following accounts are included in working capital management? I. accounts payable II. accounts receivable III. fixed assets IV. inventory    A.  I and II only B.  I and III only C.  II and IV only D.  I, II, and IV only E.  II, III, and IV only Refer to section 1.1

19.

Which one of the following is a working capital management decision?    A.  determining the amount of equipment needed to complete a job B.  determining whether to pay cash for a purchase or use the credit offered by the supplier C.  determining the amount of long-term debt required to complete a project D.  determining the number of shares of stock to issue to fund an acquisition E.  determining whether or not a project should be accepted Refer to section 1.1

20.

Which one of the following statements concerning a sole proprietorship is correct?    A.  A sole proprietorship is designed to protect the personal assets of the owner. B.  The profits of a sole proprietorship are subject to double taxation. C.  The owner of a sole proprietorship is personally responsible for all of the company's debts. D.  There are very few sole proprietorships remaining in the U.S. today. E.  A sole proprietorship is structured the same as a limited liability company. Refer to section 1.2

Which one of the following refers to the ability of shareholders to undo a firm's dividend policy and create an alternative dividend policy

The ex-dividend date is defined as _____ business day(s) before the date of record.    A.  1 B.  2 C.  3 D.  5 E.  10 Refer to section 17.1

6.	Which one of the following dates is used to determine the names of shareholders who will receive a dividend payment?    A.  ex-rights date B.  ex-dividend date C.  date of record D.  date of payment E.  declaration date Refer to section 17.1

7.	Dividend payments are mailed on which one of the following dates?    A.  ex-rights date B.  ex-dividend date C.  date of record D.  date of payment E.  declaration date Refer to section 17.1

8.

Which one of the following refers to the ability of shareholders to undo a firm's dividend policy and create an alternative dividend policy by reinvesting dividends or selling shares of stock?    A.  perfect foresight model B.  personalization C.  recapitalization D.  offsetting leverage E.  homemade dividend policy Refer to section 17.2

9.

What is the information content effect?    A.  any type of new information that causes a firm to cease paying dividends B.  any news announcement that was anticipated and thus produces no reaction from investors C.  the primary contributing data that helps directors determine the amount of a particular dividend payment D.  any type of reaction from a shareholder in response to a news announcement related to the stock issuer E.  the financial market's reaction to a change in the amount of a firm's dividend Refer to section 17.5