Lesson 2.5: Key Positions in the Corporate Organization

Question 1

they elect the Board of Directors (BOD)

Answer 1

shareholders

Question 2

each share is equal to

Answer 2

one voting right

Question 3

responsibility of the BOD

Answer 3

carry out the objectives of the shareholders,

Otherwise, they would not be elected in that position

Question 4

the highest policy making body in a
corporation

Answer 4

board of directors

Question 5

board of director’s primary responsibility is the

Answer 5

ensure that the corporation is operating to the serve the best interest of the shareholders

Question 6

the board of directors set

Answer 6

policies of investments, capital structure, and dividend policies

Question 7

the board of directors approve

Answer 7

the company’s strategies goals and budgets; the information and other disclosures reported in the financial statements

Question 8

the board of directors appoint or remove

Answer 8

members from the top management including the president

Question 9

the board of directors determine

Answer 9

the top management’s compensation

Question 10

the role of the president in a corporation may

Answer 10

vary from one company to another

Question 11

the president or CEO approves the

Answer 11

information and other disclosures reported in the financial statements

Question 12

the president or CEO oversees

Answer 12

the operations of a company, ensuring that the strategies approved by the board are implemented as planned

Question 13

the president or CEO perform

Answer 13

all areas of management: planning, organizing, staffing, directing, and controlling

Question 14

the president or CEO represent

Answer 14

the company in professional, social, and civic activities

Question 15

the vp of marketing formulates

Answer 15

marketing strategies and plans

Question 16

the vp of marketing directs and coordinates

Answer 16

company sales

Question 17

the vp of marketing performs

Answer 17

market and competitor analysis

Question 18

the vp of marketing analyzes and evaluates

Answer 18

the effectiveness and cost of marketing methods applied

Question 19

the vp of marketing conducts or directs

Answer 19

research that will allow the company to identify new marketing opportunities (e.g. variants of existing product/services already offered in the market)

Question 20

the vp of marketing promotes

Answer 20

good relationships with customers and distributors

Question 21

the vp of production ensures

Answer 21

production meets customer demands

Question 22

the vp of production identifies

Answer 22

production technology/processes that minimizes production cost and make the company cost competitive; adequate and cheap raw material suppliers

Question 23

the vp of production comes up with

Answer 23

a production plan that minimizes the utilization of the company’s production facilities

Question 24

the vp of administration coordinates

Answer 24

the functions of administration, finance, and marketing departments

Question 25

the vp of administration assists

Answer 25

other departments in hiring employees

Question 26

the vp of administration provides

Answer 26

assistance in payroll preparation, payment of vendors, and collection of receivables

Question 27

the vp of administration determines

Answer 27

the location and maximum amount of office space needed by the company

Question 28

the vp of administration identifies

Answer 28

means, processes, or systems that will minimize the operating costs of the company

Question 29

the role of the vp of finance is

Answer 29

determine the appropriate capital structure of the company

Question 30

the vp of finance is also known as

Answer 30

financial manager

Question 31

refers to how much of your total assets financed by debt and how much is financed by equity.

Answer 31

capital structure

Question 32

if our assets are bought using cash from the company (from our pockets), it is financed by

Answer 32

equity

Question 33

if assets are bought using the money from our borrowings, it is financed by

Answer 33

debt

Question 34

functions of financial mangers

Answer 34

financing decisions, investing decisions, operating decisions, dividend policies

Question 35

what are financing decisions

Answer 35

decisions as to how to finance long-term investments and working capitalw

Question 36

what are investing decisions

Answer 36

minimizing the probability of failure by supporting long-term investments with a capital budgeting analysis

Question 37

what are operating decisions

Answer 37

deals with the daily operations, especially how to finance working capital accounts such as accounts receivable and inventory

Question 38

a part of profits that are available for distribution to equity shareholders

Answer 38

dividend

Question 39

what are a part of dividend policies

Answer 39

financial managers decide whether the firm should distribute all the profits or retain them or distribute a portion and retain the balance

Question 40

include making decisions as to how to finance long-term investments and working capital-which deals with the day-to-day operations of the company.

Answer 40

financing decisions

Question 41

To minimize the probability of failure, long-term investments have supported by a capital budgeting analysis.

Answer 41

investing decisions

Question 42

– deal with the daily operations of the company especially on how to finance working capital accounts such as accounts receivable and inventories

Answer 42

operating decisions

Question 43

Dividend is a part of profits that are available for distribution, to equity shareholders. The Finance manager must decide whether the firm should distribute all the profits or retain them or distribute a portion and retain the balance.

Answer 43

dividend policies

Question 44

the people that own a company.

Answer 44

shareholders

Question 45

shareholders are also known as

Answer 45

stockholders or members

Question 46

They invest their money into the company by buying shares, and have the potential to profit from the company if business goes well

Answer 46

shareholders

Question 47

responsible for making major corporate decisions, driving the direction of the company, supervising other executives, and overseeing growth plans. They're accountable to the board of directors or stakeholders of the company and are often the public face of the organization.

Answer 47

ceo or president

Question 48

the public face of the organizaiton

Answer 48

ceo or president

Question 49

are financial investments that can easily be converted to cash, typically within five years

Answer 49

short-term investments

Question 50

short-term investments are also known as

Answer 50

marketable securities or temporary investmentes

Question 51

short-term investments are sold or converted to cash after a period of only

Answer 51

3-12 months

Question 52

n account a company plans to keep for at least a year

Answer 52

long-term investments

Question 53

Long-term investors are generally willing to take

Answer 53

more risks for higher rewards

Question 54

examples of long-term investments

Answer 54

stocks, bonds, real estate, and cash

Question 55

The company has a choice on whether to finance working capital needs by

Answer 55

long-term or short-term sources

Question 56

dividend policies dictate

Answer 56

the amount of dividends paid out by the company and their frequency to its shareholders