Quiz Ch 01 – T/F Relationship Between Chairman of the Board and CEO
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or False: Is it a requirement that the Chairman of the Board must also serve as the CEO?
True or False: Is it a requirement that the Chairman of the Board must also serve as the CEO?
True or false? A firm’s management must strive to maximize the anticipated EPS in order to enhance shareholders’ value maximization.
True or false? It is necessary for a firm’s management to strive for long-term maximization of stock price or the stock’s “intrinsic value” in order to maximize value for shareholders. True or false?
True or false: Is it accurate to state that management’s strategy aimed at maximizing the firm’s expected profits for the current year will also align with maximizing stockholders’ wealth for the same year?
True or false? The “marginal investor” is an active market participant who, in the absence of new information, impacts stock prices by buying during price declines and selling during increases.
True or false: To optimize shareholders’ value, a firm’s management should aim to maximize the stock price at a particular target date.
True or False: Do partnerships and proprietorships usually possess a tax advantage compared to corporations?
True or False: Opting for S corporation taxation allows both the corporation and its stockholders to escape all Federal taxes, and was this provision introduced in the Federal Tax Code to stimulate the creation of small businesses?
True or False: If a corporation opts to be taxed as an S corporation, can it bypass corporate tax, though its stockholders will need to pay personal taxes on the company’s net income?
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