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

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 ?