Financial Management Exam 2023 (Answered) Which of these parties monitor corporate activities as part of corporate governance? credit analysis-examines a
... [Show More] firm's financial strength auditors-monitor a firm's accounting systems investment analysts-monitor a firms business activities -chief financial officer The fiduciary duty is violated in which one of these examples? -a financial adviser tells a client she should sell her shares of stock as the price per share is expected to decline -a bank lending officer refuses to loan bank money to a family member with poor credit -a corporate treasurer instructs his staff to pay a tax payment the day before the payment is due to ensure the payment is processed by the due date. a corporate treasurer invests company funds in a friend's bank at a lower interest rate than that offered by other comparable banks Which of these best defines ethics? Ethics is the study of values, morals, and morality. -Ethics is the process of changing people's behavior to match your own ideals. -Ethics is the study of how people behave when they are monitored. -Ethics is the study of how people act when they are not being monitored. Which one of these relationships best fits the definition of a fiduciary relationship? -Sid gave Fred cash in exchange for his used motorcycle. Al's retirement funds are managed by the trust department at the local bank. -Harry keeps all his cash in a safety deposit box at the bank. -Marti donated some used items to the local thrift store to help the needy. Which of these is most apt to lessen the probability of an agency problem with an employee? -offering no employee benefits paying a bonus for good performance -minimizing the number of vacation days -paying a flat salary with no bonus Which of these are advantages of the corporate form of business ownership? limited liability legal status -double taxation easy access to capital The profitability of financial market intermediaries depends upon which of these? successful execution of unique professional services -questionable business practices -aggressive sales and advertising staff -market domination within a firm's industry What are the two key characteristics of [Show Less]