BUS 209 EXAM ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

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BUS 209 EXAM ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS What is the goal of the firm and therefore of managers and employees? - Answer -Maximize the wealth of the shareholders/ maximizing stock price What three main reasons is profit maximization potentially inconsistent with wealth maximization? - Answer --Timing of cash flows ( sometimes better to receive sooner than later ) -Risk -Difference between profits and cash flow ( not the same ) What is risk? - Answer -Actual outcome could be different than expected outcome Why must Financial managers consider risk as well as return when they evaluate decision alternative or action? - Answer -Financial managers have to worry about if the risk is worth the reward Is maximizing shareholder wealth inconsistent with having concern for the welfare of a firm's other stakeholders? - Answer -No, if all is satisfied ( people, community ) it all comes back to satisfy the stakeholders Profits vs Cash Flows: Are they the same? - Answer -No Apply marginal cost benefit analysis to organize the data. - Answer -Marginal benefit- marginal cost= net benefit How would you know if you made a good decision when making a purchase and using the marginal cost benefit analysis? Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com - Answer -if the benefit is positive, it was a good decision What are the main types of decisions that financial managers make? - Answer -Financing decision, investment decision Why is it important that managers recognize that a tradeoff exists between risk and return? - Answer -he more risk, the more possible return Why does that tradeoff exist? - Answer -the tradeoff exist because the more you are willing to risk the more you are willing to gain/lose What is the primary economic principle used in managerial finance? - Answer -Marginal cost benefit analysis ( does the benefit outweigh the cost) What are the major differences between accounting and finance with respect to emphasis on cash flow and decision making - Answer -Accounting principles- Accrual basis ( putting stuff into books even though it hasn't happened yet ) Finance- cash bases (accounting data along with other factors before making decisions) sole proprietorship - Answer -taxes pass through, unlimited liability, full ownership partnership - Answer -sharing, passes through, split with partners partnership advantages - Answer -splitting responsibilities partnership disadvantages - Answer -splitting profits, partner bails corporation pros - Answer -reduce liability Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com