Fin 571 Week 1 Exam

In: Business and Management

Submitted By elimay710
Words 534
Pages 3
WEEK 1 QUIZ

Multiple Choice Question 42 | | Which of the following business organizational forms subjects the owner(s) to unlimited liability? | | | | a) sole proprietorship |

| b) partnership |

| c) corporation |

| d) a and b | | |
Multiple Choice Question 44 | | Which of the following business organizational forms is easiest to raise capital? | | |

| a) sole proprietorship |

| b) partnership |

| c) corporation |

| d) a and b | | |
Multiple Choice Question 50 | | Which organizational form best enables the owners of the firm to monitor the actions of other owners of the same firm? | | |

| public corporation |

| private corporation |

| sole proprietorship |

| partnership |
Multiple Choice Question 81 | | Which of the following factors or activities can be controlled by the management of the firm? | | |

| The level of economic activity. |

| Stock market conditions. |

| The level of interest rates. |

| Capital budgeting. |
Multiple Choice Question 82 | | The legal system and market forces impose substantial costs on individuals and institutions that engage in unethical behavior. Which of the following would not be an example of the above? | | |

| Financial losses. |

| Agency conflicts. |

| Jail time. |

| Legal fines. |
Multiple Choice Question 48 | | The most common reason that corporate firms use the futures and options markets is | | |

| to hedge risk. |

| to make deposits. |

| none of these. |

| to take risk. |
Multiple Choice Question 55 | | Galan Associates prepared its financial statement for 2008 based on the information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables of $7,789. The company's net fixed…...

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