week1quiz - proprietorship or a partnership? Your Answer:...

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1. Question: You have a chance to buy an annuity that pays $1,000 at the end of each year for 3 years. You could earn 5.5% on your money in other investments with equal risk. What is the most you should pay for the annuity? : $2,697.93 $2,775.77 $2,921.86 $3,075.64 $3,237.52 Instructor Explanation: The answer represents the present value of the cash flows discounted by 5.5% over 3 years. Points Received: (not graded) Comments: 2. Question: How much would $5,000 due in 50 years be worth today if the discount rate were 7.5% Your Answer: Instructor Explanation:
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Points Received: (not graded) Comments: 3. Question: Money Markets are markets for? Your Answer: Points Received: (not graded) Comments: 4. Question: Which of the following could explain why a business might choose to organize as a corporation rather thatn as a sole
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Unformatted text preview: proprietorship or a partnership? Your Answer: Instructor Explanation: The advantages of incorporation are unlimited life, easy transfer-ability of ownership interest, limited liability, and ease of raising money in the capital markets. Regulations and double taxation are disadvantages of corporations. Points Received: (not graded) Comments: 5. Question: Which of the following statements is true? Your Answer: Instructor Explanation: Statement c is correct. Sole proprietorships pay personal income tax not corporate tax. The other statements are false. Corporations are subject to limited liability, but are subject to more regulations than the other forms of business organizations. Points Received: (not graded) Comments:...
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week1quiz - proprietorship or a partnership? Your Answer:...

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