FIN 221 Fall 2009 Exam 1 - FIN 221 Fall 2009 Exam 1...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 221 Fall 2009 Exam 1 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. Relaxant Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT? A. Relaxant's shareholders (the ex-partners) will now be exposed to less liability. B. The company will probably be subject to fewer regulations and required disclosures. C. Assuming the firm is profitable, none of its income will be subject to federal income taxes. D. The firm's investors will be exposed to less liability, but they will find it more difficult to transfer their ownership. E. The firm will find it more difficult to raise additional capital to support its growth. 2. The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to 3. Which of the following statements is CORRECT? 4. Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern