Finance 300 Study guides, Class notes & Summaries

What best represents the "Agency Problem"?The agency problem results from the separation of management and the ownership of the firm, The agency problem may interfere with the implementation of maximizing shareholder wealth, and Managers might attempt to benefit themselves in terms of salary and perquisites at the expense of shareholders The financial manager most directly responsible for producing the company's financial statements and directing its cost accounting functions is the_...

In addition to having personal financial stakes in their portfolio of investments, professional venture capitalists have raised funds from other investors to invest in the portfolio. t The establishment of the Small Business Administration was the first major government foray into venture investing. t Created by the Small Business Administration, Small Business Investment Companies possess important tax advantages and were eligible to borrow amounts up to four times their equity base f...

T/F: One problem with maximization of shareholder wealth as a goal is that it ignores risk taken by the firm's financial decisions. False Who is responsible for cash and credit management? Treasurer What are the five basic principles of finance? Cash flow matter Money has a time value Risk requires a reward Market price is usually right Conflicts of interest cause agency problems

Finance 300 Final Exam