Financequiz1 - should be to _____________. Your Answer: a....

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1 . Question: Cheers Inc. operates as a partnership. Now the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT?
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Your Answer: a. Chee rs™ shar ehol ders (the ex- partn ers) will now be expo sed to less liabil ity. C ORR ECT b. Ch eers will now be subje ct to fewer regul ation s. c. Ass umin g Cheer s is profit able, of its
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Points Received: 5 of 5 Comments: 2 . Question: Which of the following statements is CORRECT?
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Your Answer: a. Cor porati ons gener ally face fewer regula tions than sole propri etor- ships. b. Cor porate share holde rs are expos ed to unlim ited liabili ty. c. It is usual ly easier to trans fer owne rship in a corpo ratio n than
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Points Received: 5 of 5 Comments: 3 . Question: The primary operating goal of a publicly-owned firm interested in serving its stockholders
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Unformatted text preview: should be to _____________. Your Answer: a. Ma ximiz e its expe cted total corpo rate inco me. b. Ma ximiz e its expe cted EPS. c. Mi nimiz e the chanc es of losses . d. M axim ize the stoc k price per shar e over Points Received: 5 of 5 Comments: 4 . Question: Which of the following mechanisms would be most likely to help motivate managers to act in the best interest of shareholders? Your Answer: a. D ecre ase the use of restri ctive cove nant s in bond agre eme nts. b. Ta ke actio ns that redu ce the possi bilit y of a hosti le take over. IN CO RR ECT Points Received: 0 of 5 Comments:...
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This note was uploaded on 08/06/2011 for the course MT 217 taught by Professor Finance during the Spring '11 term at Kaplan University.

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Financequiz1 - should be to _____________. Your Answer: a....

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