Agency theory suggests that managers(the agents), particularly those of large , publically-owned firms, may have different objectives from those of the:

Related Mcqs:

1. The default risk is measured by large traders, managers and investors with the help of _________?

   A. sinking analysis
   B. analyzing financial ratios
   C. portfolio scenario value
   D. automated machine analysis

2. Cash flows that could be generated from an owned asset by company but not use in project are classified as_________________?

   A. Occurred cost
   B. Mean cost
   C. Opportunity costs
   D. Weighted cost

3. Which of the following ratios are particularly interesting to short-term creditors?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Profitability Ratios
   D. Market Value Ratios

4. Which of the following ratios are particularly interesting to shortterm creditors?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Profitability Ratios
   D. Market Value Ratios

5. Which of the following ratios are particularly interesting to short term creditors?

   A. Liquidity Ratios
   B. Long-term Solvency Ratios
   C. Profitability Ratios
   D. Market Value Ratios

6. Step in initial public offering in which hired agents act on behalf of owners is classified as______________?

   A. Hiring problems
   B. Agency problems
   C. Corporation internal problems
   D. Corporation external problems

7. Process in which managers of company identify projects to add value is classified as__________?

   A. Capital budgeting
   B. Cost budgeting
   C. Book value budgeting
   D. Equity budgeting

8. Legal entity separation from its legal owners and managers with help of state laws is classified as____________?

   A. Controlled corporate business
   B. Corporation
   C. Limited corporate business
   D. Unlimited corporate business

9. An analysis of decision making of investors and managers is classified as_________?

   A. Riskier finance
   B. Behavioral finance
   C. Premium finance
   D. Buying finance

10. The process in which the managers of the company identify projects to add value is classified as __________?

    A. capital budgeting
    B. cost budgeting
    C. book value budgeting
    D. equity budgeting