{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Quizzes - 1.Question Money markets are markets for Your...

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

View Full Document Right Arrow Icon
1. Question: Money markets are markets for ______. Your Answer: foreign stocks consumer automobile loans U.S. stocks short-term debt securities long-term bonds Points Received: (not graded) Comments: 2. Question: Which of the following could explain why a business might choose to organize as a corporation rather than as a sole proprietorship or a partnership? Your Answer: A. Corporations generally face fewer regulations. B. Corporations generally face lower taxes. C. Corporations generally find it easier to raise capital. D. Corporations enjoy unlimited liability. E. Statements C and D are correct. Instructor Explanation: The advantages of incorporation include unlimited life, easy transferability of ownership interest, limited liability, and ease of raising money in the capital markets. Regulations and double taxation are disadvantages of corporations. Points Received: (not graded) Comments: 3. Question: Which of the following statements is true? Your Answer: One of the benefits of incorporating your business is that you become entitiled to receive unlimited liability. Sole proprietorships are subject to more regulations than corporations. Sole proprietorships do not have to pay corporate tax. All of the above answers are correct. None of the above answers are correct. Instructor Explanation: Sole proprietorships pay personal income tax, not corporate tax. The other statements are false. Corporations are subject to limited liability, but are subject to more regulations than the other forms of business organizations. Points Received: (not graded) Comments: 4. Question: While other things are held constant, which of the following actions would increase the amount of cash on a company's balance sheet? Your Answer: The company repurchases common stock. The company pays a dividend. The company issues new common stock. The company purchases a new piece of equipment. The company gives customers more time to pay their bills. Points Received: (not graded) Comments: 5. Question: Kramer Corporation recently announced that its net income was lower than last year. However, analysts estimate that the company's net cash flow increased. What factors could explain this discrepancy? Your Answer:
Background image of page 1

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

View Full Document Right Arrow Icon
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.

{[ snackBarMessage ]}