financial management overview1

financial management overview1 - Firm organization i Answer...

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Firm organization Answer: a Diff: E i . Until this year, Cheers Inc. was organized as a partnership. This year, the partners have decided to organize the business as a corporation. As a result of this change in organizational form, which of the following statements is most correct? a. Cheers’ shareholders (the ex-partners) will now have limited liability. b. Cheers will now be subject to fewer regulations. c. Cheers will now pay less in taxes. d. Cheers’ investors will now find it more difficult to transfer ownership. e. Cheers will now find it more difficult to raise additional capital. Firm organization Answer: c Diff: E N ii . Which of the following statements is most correct? a. Corporations generally face fewer regulations than sole proprietor-ships do. b. Corporate shareholders have unlimited liability. c. It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship.
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financial management overview1 - Firm organization i Answer...

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