Test 1 - 1 MC Qu 1 Individuals who provide small amounts of cap Individuals who provide small amounts of capital and expert business advice to

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1. MC Qu. 1 Individuals who provide small amounts of cap. .. Individuals who provide small amounts of capital and expert business advice to small firms in exchange for an ownership stake in the firm are referred to as ___________________. institutional investors corporate investors angel investors capital investors 2. MC Qu. 3 A legal duty between two parties where one p. .. A legal duty between two parties where one party must act in the interest of the other party is known as a(n) ______________. Fiduciary Venture capitalist Restricted capitalist Restricted investor 3. MC Qu. 4 The portion of a company's profits that are. .. The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as _______________. Restricted earnings Venture capital Retained earnings Institutional investment 4. MC Qu. 9 The overall goal of the financial manager is. .. The overall goal of the financial manager is to _________________. Minimize total costs
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Maximize net income Maximize earnings per share Maximize shareholder wealth 5. MC Qu. 10 Maximizing owners' equity value means carefully. .. Maximizing owners' equity value means carefully considering all of the following except _______. How to best bring additional funds into the firm Which projects to invest in How best to increase the firm's risk How best to return the profits from those projects to the owners over time 6. MC Qu. 13 The most common type of business in the Unit. .. The most common type of business in the United States is the __________. Corporation Partnership Sole Proprietorship Hybrid organization such as a limited liability company 7. MC Qu. 14 The biggest disadvantage of the sole proprie. .. The biggest disadvantage of the sole proprietorship is _________________. Unlimited liability Double taxation Limited access to capital Total control 8.
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MC Qu. 16 All of the following are advantages to organ. .. All of the following are advantages to organizing as a corporation except ____. Limited liability Double taxation Easy access to capital Easy to transfer ownership 9. MC Qu. 22 From the perspective of control, the best fo. .. From the perspective of control, the best form of business organization is the __________. Sole proprietorship Corporation Partnership S Corporation 10. MC Qu. 33 The board of directors _____________. The board of directors _____________. are hired by the CEO are elected by shareholders have unlimited liability since they oversee the day-to-day operations of the firm are employed by the Securities Exchange Commission to ensure its rules and regulations have been met 11. Problem 2-1 Balance Sheet (LG1)
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This document was uploaded on 10/29/2011 for the course FIN 320 at Jackson State.

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Test 1 - 1 MC Qu 1 Individuals who provide small amounts of cap Individuals who provide small amounts of capital and expert business advice to

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