Which of the following organization forms for a business does NOT avoid double taxation?
Which of the following organization forms for a business does NOT avoid double taxation? A) Limited partnership B) "C" corporation C) "S" corporation D) Limited liability company
Which of the following organization forms accounts for the most revenue?
Which of the following organization forms accounts for the most revenue? A) "S" corporation B) Limited partnership C) "C" corporation D) Limited liability company
Which of the following is NOT an advantage of a sole proprietorship?
Which of the following is NOT an advantage of a sole proprietorship? A) Single taxation B) Ease of setup C) Limited liability D) No separation of ownership and control
Which of the following statements is most correct?
Which of the following statements is most correct? A) An advantage to incorporation is that it allows for less regulation of the business. B) An advantage of a corporation is that it is subject to double taxation. C) Unlike a partnersh
A limited liability company is essentially: A) a limited partnership without limited partners. B) a limited partnership without a general partner. C) just another name for a limited partnership. D) just another name for a corporat
The distinguishing feature of a corporation is that:
The distinguishing feature of a corporation is that: A) their is no legal difference between the corporation and its owners. B) it is a legally defined, artificial being, separate from its owners. C) it spreads liability for its corpor
You own 100 shares of a Sub Chapter "S" corporation. The corporation earns $5.00 per ...
You own 100 shares of a Sub Chapter "S" corporation. The corporation earns $5.00 per share before taxes. Once the corporation has paid any corporate taxes that are due, it will distribute the rest of its earnings to its sharehol
In a corporation, the ultimate decisions regarding business matters are made by:
In a corporation, the ultimate decisions regarding business matters are made by: A) the Board of Directors. B) debt holders. C) shareholders. D) investors.
The person charged with running the corporation by instituting the rules and policies set by the ...
The person charged with running the corporation by instituting the rules and policies set by the board of directors is called: A) the chief operating officer. B) the company president. C) the chief executive officer. D) the chief
The Principal-Agent Problem arises: (Multiple Choice)
The Principal-Agent Problem arises: A) because managers have little incentive to work in the interest of shareholders when this means working against their own self-interest. B) because of the separation of ownership and control in a corpor
If shareholders are unhappy with a CEO's performance, they are most likely to:
If shareholders are unhappy with a CEO's performance, they are most likely to: A) buy more shares in an effort to gain control of the firm. B) file a shareholder resolution. C) replace the CEO through a grassroots shareholder upri
A ________ is when a rich individual or organization purchases a large fraction of the stock of a ...
A ________ is when a rich individual or organization purchases a large fraction of the stock of a poorly performing firm and in doing so gets enough votes to replace the board of directors and the CEO. A) shareholder proposal B) leveraged b
Which of the following statements is FALSE? A) In bankruptcy, management is given the opportunity to reorganize the firm and renegotiate with debt holders. B) Because a corporation is a separate legal entity, when it fails to repay its debt
The most senior financial manager in a corporation is usually called:
The most senior financial manager in a corporation is usually called: A) the chief executive officer. B) the chief financial officer. C) the chief operating officer. D) the chairman of the board.
An agency problem can be alleviated by: A) requiring all firms to be sole proprietorships. B) compensating managers in such a way that acting in the best interest of shareholders is also in the best interest of managers. C) asking mana
Do corporate decisions that increase the value of the firm's equity benefit society as a whole?
Do corporate decisions that increase the value of the firm's equity benefit society as a whole? A) Yes, as long as the value of the firm's equity increases, society is better off. B) Yes, as long as the increase in the value of th
What strategies are available to shareholders to help ensure that managers are motivated to act in ...
What strategies are available to shareholders to help ensure that managers are motivated to act in the interest of the shareholders rather than their own interest?
The largest stock market in the world by volume is:
The largest stock market in the world by volume is: A) the London Stock Exchange. B) NASDAQ. C) the American Stock Exchange. D) the New York Stock Exchange.
An investment is said to be liquid if the investment:
An investment is said to be liquid if the investment: A) has large day to day fluctuations in price. B) has a large bid-ask spread. C) can easily be converted into cash. D) is traded on a stock exchange.
What type of company trades on an organized stock exchange?
What type of company trades on an organized stock exchange? A) A limited liability company B) A private company C) An "S" corporation D) A public company
Which of the following statements is FALSE? A) On Nasdaq, stocks can and do have multiple market makers who compete with each other. Each market maker must post bid and ask prices in the Nasdaq network where they can be viewed by all participant
If you buy shares of Coca-Cola on the primary market:
If you buy shares of Coca-Cola on the primary market: A) Coca-Cola receives the money because the company has issued new shares. B) you buy the shares from another investor who decided to sell the shares. C) you buy the shares from the
U.S. public companies are required to file their annual financial statements with the U.S. ...
U.S. public companies are required to file their annual financial statements with the U.S. Securities and Exchange Commission on which form? A) 10-A B) 10-K C) 10-Q D) 10-SEC
Which of the following is NOT a financial statement that every public company is required to ...
Which of the following is NOT a financial statement that every public company is required to produce? A) Income Statement B) Statement of Sources and Uses of Cash C) Balance Sheet D) Statement of Stockholders' Equity
The third party who checks annual financial statements to ensure that they are prepared according to ...
The third party who checks annual financial statements to ensure that they are prepared according to GAAP and verifies that the information reported is reliable is the: A) NYSE Enforcement Board. B) Accounting Standards Board. C) Secur
Dustin's Donuts experienced a decrease in the value of the trademark of a company it acquired two ...
Dustin's Donuts experienced a decrease in the value of the trademark of a company it acquired two years ago. This reduction in value results in: A) an impairment charge. B) depreciation expense. C) an operating expense.
Which of the following is an example of an intangible asset?
Which of the following is an example of an intangible asset? A) Brand names and trademarks B) Patents C) Customer relationships D) All of the above are intangible assets.
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