The system by which companies are managed and controlled is known as:

A: Management System

B: Strategic System

C: Corporate Governance

D: Internal System

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Corporate Governance

Corporate governance encompasses the relationship among a companys:

A: Shareholders and board of director

B: Board of directors and senior management

C: Shareholders and senior management

D: Shareholders, board of directors and senior management

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Shareholders, board of directors and senior management

The Board of Directors sets company-wide policy and advices the CEO and other senior executies, who manage the companys:

A: Managerial activities

B: Year-to-Year activities

C: Day-to-Day activities

D: Financial activities

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Day-to-Day activities

A major facet of financial management involves providing the financing necessary to support:

A: Liabilities

B: Debts

C: Loans

D: Assets

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Assets

___________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

A: Financial management

B: Profit maximization

C: Agency theory

D: Social responsibility

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Financial management

Having some overall goal in mind, financial management is concerned with:

A: Acquisition of assets

B: Financing of assets

C: Management of assets

D: All of them

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All of them

The investment decision is the most important of the firms three major decisions, when it comes to:

A: Value creation

B: Value addition

C: Value proposition

D: Value deletion

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Value creation

Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as:

A: Earning per share ratio

B: Proposed dividend ratio

C: Dividend payout ratio

D: Expected dividend ratio

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Dividend payout ratio

Profit maximization is the maximizing a firms Earning:

A: Before Tax

B: After Tax

C: Both A and B

D: None of Them

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After Tax

An individual authorized by another person, called the principle, to act on the latters on behalf is known as an/a:

A: Agent

B: Servant

C: Subordinate

D: Assistant

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Agent

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