FIN 571 TUTOR Motivated Minds/fin571tutor.com FIN 571 TUTOR Motivated Minds/fin571tutor.com | Page 34

5.The primary goal of financial management is to:
maximize current dividends per share of the existing stock.
avoid financial distress.
minimize operational costs and maximize firm efficiency.
maximize the current value per share of the existing stock.
maintain steady growth in both s ales and net earnings.
6.Which one of the following business types is best suited to raising large
amounts of capital?
limited partnership
corporation
sole proprietorship
limited liability company
general partnership
7.Accounting profits and cash flows are generally:
the same since accounting profits reflect when cash flows occur.
different because of GAAP rules regarding the recognition of income.
different because cash inflows must occur before revenue recognition.
the same since they reflect current laws and accounting standards.
the same due to the requirements of GAAP.