Chapter 01 MC - CHAPTER ONE Multiple Choice Questions 1-1....

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

View Full Document Right Arrow Icon
CHAPTER ONE Multiple Choice Questions 1-1. One of the most important disadvantages of the corporate form of business is: a. limited owner liability b. ease of transferring ownership c. double taxation d. unlimited owner liability 1-2. An important advantage a general partner usually has is: a. limited liability b. larger share of profit distribution c. unlimited liability d. only one person in control 1-3. Which statement is correct about limited partners? a. they have management control limited to their percent of investment b. they have no tax liability c. they can lose only one half of their initial investment d. there is no limit to the number of partners that may participate 1-4. Profit maximization: a. is an economic principle only b. is avoided because it is a long-run concept c. maximizes the wealth of the owners d. does not consider cash flow or risk 1-5. Wealth maximization: a. is usually discounted by bondholders b. takes a long-run perspective that focuses on the owners c. is a long-run perspective used by financial managers for internal use only d. is an accounting number 1-6. A Subchapter S corporation: a. is a large corporation b. has limited liability for its owners c. is double taxed d. has unlimited liability for its owners 1-7. An agent has a fiduciary responsibility to the principals: a. always 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
b. for ethical obligations only c. never d. for legal obligations only 1-8. In a very large corporation, the financial planner usually reports directly to the: a. treasurer b. controller c. chief financial officer d. financial accountant
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/21/2011 for the course ACC 452 taught by Professor Mr.cula during the Spring '10 term at Abraham Baldwin Agricultural College.

Page1 / 6

Chapter 01 MC - CHAPTER ONE Multiple Choice Questions 1-1....

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online