Which of the following statements regarding corporate finance is incorrect?
A. Corporate finance is one of the major branches of finance, yet it is considered as the ‘granddaddy’ (mainstay or backbone) of all functional areas in finance.
B. A firm’s financing decisions and investing decisions are generally considered as the two main issues of corporate finance.
C. CFA is the person who is in charge of finance functions of a typical corporation overseeing both the treasurer’s functions and the controller’s functions.
D. A corporation is a legally empowered entity that can own assets, assume liabilities, make transactions, become a litigation party, and engage in other specifically designated activities.
2. It is generally believed that a society needs ethics (good ethical standards and behaviors) above and beyond laws. Which of the following is not a reason for this?
A. Law is passive (reactive) and punitive.
B. Law is crude (it cannot spell out everything).
C. Law is very complex and sophisticated.
D. Law is costly to enforce.