350Q1[1] - Version A FIN 350, 11S Fin 350 Business Finance...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Version A FIN 350, 11S Page 1 of 2 Fin 350 – Business Finance Quiz 1 NAME:______________________ SECTION: _______________ Due date: February 21, 2011 Answer All Questions. Read all the answers carefully and select the best answer for each question. 1. Which of the following statements is MOST CORRECT ? a) Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization. b) Sole proprietorships are subject to less regulations than corporations. c) In part due to limited liability and ease of ownership transfer, corporations have more trouble raising money in financial markets than other organizational forms. d) One of the advantages of the corporate form of organization is that it avoids double taxation. e) It is easier to transfer one’s ownership interest in a partnership than in a corporation. 2. Which of the following statements is MOST CORRECT ? a) The threat of takeovers reduces conflict of interest problems, but only between bondholders and stockholders. b) Agency conflicts between stockholders and managers are not really a problem when non-managers own shares in a firm. c) Managers may not operate in stockholders’ best interests. As long as managers stay within the law, there are no effective controls that stockholders can implement to control managerial decision making. d)
Background image of page 1

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

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

This note was uploaded on 09/30/2011 for the course FIN 350 taught by Professor Chen during the Spring '07 term at S.F. State.

Page1 / 2

350Q1[1] - Version A FIN 350, 11S Fin 350 Business Finance...

This preview shows document pages 1 - 2. Sign up to view the full document.

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