Question :
31. Examples of factors from the operating environment that would affect : 1245640
31. Examples of factors from the operating environment that would affect a firm’s goals and
strategies include which of the following?
A. goals and strategies of the firm’s competitors
B. barriers to entry of the firm’s industry, such as patents or large investments in buildings and equipment
C. nature of the demand for the firm’s products and services
D. existence and nature of government regulation
E. all of the above
32. To carry out their plans, firms require financing, that is, funds from owners and creditors. Owners provide funds to a firm and in return receive ownership interests. For a corporation, the ownership interests are:
A. Common Stock Shares
B. Corporate Bonds
C. Notes Receivable
D. Notes Payable
E. Certificates of Deposit
33. To carry out their plans, firms require financing, that is, funds from owners and creditors. When the firm raises funds from owners, which of the following is true?
A. There is no obligation to repay these funds.
B. There is an obligation to repay these funds.
C. Firms must distribute cash dividends to that firm’s shareholders at least annually.
D. Firm must distribute stock dividends to that firm’s shareholders at least annually.
E. None of the above are true.
34. When creditors provide funds to a firm, which of the following is/are true?
A. The firm must repay, usually with interest, in specific amounts at specific dates.
B. Long-term creditors require repayment from the borrower over a period of
time that exceeds one year.
C. One common form of long-term financing is bonds.
D. Suppliers of raw materials or merchandise that do not require payment for 30 days provide short-term funds.
E. All of the above are true.
35. A firm makes investments to obtain productive capacity to carry out its business activities.
Investing activities involve acquiring all of the following except:
A. land, buildings, and equipment.
B. patents, licenses, and other contractual rights.
C. common shares or bonds of other firms.
D. long-term notes receivable of other firms.
E. common shares or bonds of the firm.
36. Management operates the productive capacity of the firm to generate earnings. Operating activities include the following except for:
A. Purchasing.
B. Research and development.
C. Marketing and administration.
D. Production.
E. Dividend payments.
37. Firms communicate the results of their business activities in the _____.
A. annual report to shareholders
B. weekly press releases
C. monthly press releases
D. annual press releases
E. annual income tax returns
38. Which of the following is/are true regarding setting goals and strategies for a charitable organization?
A. obtain sufficient resources to fund operations
B. not pursue profits or wealth increases as goals.
C. direct efforts toward providing services to constituencies
D. all of the above are true
E. none of the above are true
39. Which of the following is/are true regarding the financing of a charitable organization?
A. may obtain some or all of its financing from donations (contributions)
B. does not issue common stock or other forms of shareholders’ equity
C. does not have retained earnings
D. all of the above are true
E. none of the above are true
40. Which of the following is true regarding the investing activities of charitable organizations?
A. are not similar to business firms
B. acquire productive capacity (for example, buildings) to carry out their activities
C. issue common stock
D. issue bonds
E. issue preferred stock
