21.
Which one of the following statements concerning a sole proprietorship is
correct?
22.
Which of the following individuals have unlimited liability based on their
ownership interest?
I. general partner
II. sole proprietor
III. stockholder
IV. limited partner
23.
Which one of the following best describes the primary advantage of being a
limited partner instead of a general partner?
24.
A general partner:
25.
A limited partnership:
26.
Which of the following apply to a partnership that consists solely of general
partners?
I. double taxation of partnership profits
II. limited partnership life
III. active involvement in the firm by all the partners
IV. unlimited personal liability for all partnership debts
27.
Which of the following are advantages of the corporate form of business
ownership?
I. limited liability for firm debt
II. double taxation
III. ability to raise capital
IV. unlimited firm life
28.
Which one of the following statements is correct?
29.
Which one of the following statements is correct?
30.
The articles of incorporation:
I. describe the purpose of the firm.
II. are amended periodically.
III. set forth the number of shares of stock that can be issued.
IV. detail the method that will be used to elect corporate directors.
31.
Corporate bylaws:
32.
Which one of the following characteristics applies to a limited liability
company?
33.
Which one of the following business types is best suited to raising large
amounts of capital?
34.
Which type of business organization has all the respective rights and
privileges of a legal person?
35.
Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund
the venture but wants to limit his liability to his initial investment and has
no interest in the daily operations. Sam will contribute his full efforts on a
daily basis but has limited funds to invest in the business. Alfredo will be
involved as an active consultant and manager and will also contribute
funds. Sam and Alfredo are willing to accept liability for the firm’s debts as
they feel they have nothing to lose by doing so. All three individuals will
share in the firm’s profits and wish to keep the initial organizational costs of
the business to a minimum. Which form of business entity should these
individuals adopt?
36.
Sally and Alicia currently are general partners in a business located in
Atlanta, Georgia. They are content with their current tax situation but are
both very uncomfortable with the unlimited liability to which they are each
subjected. Which form of business entity should they consider to replace
their general partnership assuming they wish to remain the only two owners
of their business? Whichever organization they select, they wish to be
treated equally.
37.
Which one of the following best states the primary goal of financial
management?
38.
Which one of the following best illustrates that the management of a firm is
adhering to the goal of financial management?
39.
Why should financial managers strive to maximize the current value per
share of the existing stock?
40.
Decisions made by financial managers should primarily focus on increasing
which one of the following?
41.
The Sarbanes-Oxley Act of 2002 is a governmental response to: