MGMT 640 MGMT640 Quiz 1 Answers (MD)

MGMT 640 MGMT640 Quiz 1 Answers (MD)

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MGMT 640 Quiz 1

  1. What are the two basic sources of funds for all businesses? 
  2. Working capital management is the management of current assets, such as inventory, and current liabilities, such as money owed to suppliers. 
  3. What are the forms of business organization discussed in this chapter? 
  4. What is meant by stockholders’ limited liability?
  5. What is double taxation? 
  6. What are some of the regulations pertaining to boards of directors that were put in place to reduce agency conflicts? 
  7. Which one of the following mechanisms helps to align management interests with those of its shareholders? 
  8. One of the best ways to reduce agency conflict is by 
  9. Which of the following factors or activities can be controlled by the management of the firm? 
  10. Current Liabilities are liabilities that will be converted to cash within a year 

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