The Main Reason a Firm Would Establish a Firewall for Its

question 22

Multiple Choice

The main reason a firm would establish a firewall for its intranet is that it wants to

• A) prevent outsiders from being able to access information on its network.
• B) protect itself against loss of data in the event of a fire, flood, or other catastrophe.
• C) create an interface to hook into Internet2 using firewire connections.
• D) prevent employees from gaining access to the Internet for personal use.

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Definitions:

Projected Capital Budget

A forward-looking budget that outlines anticipated investments in projects and assets for the purpose of long-term growth.

Net Income

The net income of a business following the deduction of all costs and taxes from its overall revenue.

Residual Dividend Policy

A method where dividends are based on earnings minus capital expenditures and working capital needs; basically, dividends are paid from leftover or residual earnings.

Target Capital Structure

The mix of debt, preferred stock, and common equity with which the firm plans to finance its investments. Companies often target a specific structure to optimize their cost of capital.