(a)a conflict of interest (b)increased transactional costs (c)stability in relations (d)none of the above Answer:(a) 11.A problem with using the profit maximization criterion is (a)deciding which period's profit is to be maximized (b)the definition of"maximize profits"is ambiguous (c)the failure to consider risk (d)all of the above Answer:(d) 12.The chief financial officer(CFO)of a corporation normally reports to the of the company. (a)controller (b)treasurer (c)chief executive officer (d)chairman of the board of directors Answer:(c) 13.The treasurer's job includes managing all of the following except: (a)the firm's exposure to currency and interest rate risks (b)the tax department (c)relations with the external investment community (d)the analysis of proposed mergers and acquisitions Answer:(d) 14.The controller's job includes responsibility for (a)relations with the external investment community (b)preparation of financial statements for use by shareholders,creditors and regulatory authorities (c)analysis of proposed mergers,acquisitions and spin-offs (d)all of the above Answer:(b) 15.The basic unit of analysis in capital budgeting is the (a)financing project (b)investment project (c)strategic project (d)variable project 1-31-3 (a) a conflict of interest (b) increased transactional costs (c) stability in relations (d) none of the above Answer: (a) 11. A problem with using the profit maximization criterion is ________. (a) deciding which period’s profit is to be maximized (b) the definition of “maximize profits” is ambiguous (c) the failure to consider risk (d) all of the above Answer: (d) 12. The chief financial officer (CFO) of a corporation normally reports to the ________ of the company. (a) controller (b) treasurer (c) chief executive officer (d) chairman of the board of directors Answer: (c) 13. The treasurer’s job includes managing all of the following except: (a) the firm’s exposure to currency and interest rate risks (b) the tax department (c) relations with the external investment community (d) the analysis of proposed mergers and acquisitions Answer: (d) 14. The controller’s job includes responsibility for ________. (a) relations with the external investment community (b) preparation of financial statements for use by shareholders, creditors and regulatory authorities (c) analysis of proposed mergers, acquisitions and spin-offs (d) all of the above Answer: (b) 15. The basic unit of analysis in capital budgeting is the ________. (a) financing project (b) investment project (c) strategic project (d) variable project