MRTS 1342 Exam 2 Questions with
Complete Solutions
What is needed for a promissory note? - Answer--total principal
-rate of interest
-total interest paid
-length of time
FOB Shipping and FOB Destination- - Answer--FOB Shipping- buyer pays/responsible
-FOB destination- seller pays/responsible
Partnership - Answer--The association of two or more persons who act as co-owners of
a business
corpration - Answer-Business organization that is both a legal and accounting entity
Articles of incorporation- - Answer-Documents submitted by incorporators when
applying for a charter
common stock - Answer-Part of paid-in capital representing the basic ownership equity
of the corporation. If the corporation has only one class of stock, it will be common stock
stock certificate - Answer-- Formal document issued to investors in a corporation that
shows the number of shares purchased
Unlimited Liability- - Answer-- Partners may be personally liable for debts of the
partnership
Liquidation- - Answer-- Occurs when a business is terminated, the assets are sold, and
liabilities and partners are paid off
Realization- - Answer-- The conversion of noncash assets into cash in the liquidation
process.
Define blank endorsement - Answer-Anyones signature to claim check
Define special (full) endorsement - Answer-Designated to specific person to cash check
Define qualified endorsement - Answer-Limits the liability of the endorsement
Who is the drawer? - Answer-The person who writes a check
Complete Solutions
What is needed for a promissory note? - Answer--total principal
-rate of interest
-total interest paid
-length of time
FOB Shipping and FOB Destination- - Answer--FOB Shipping- buyer pays/responsible
-FOB destination- seller pays/responsible
Partnership - Answer--The association of two or more persons who act as co-owners of
a business
corpration - Answer-Business organization that is both a legal and accounting entity
Articles of incorporation- - Answer-Documents submitted by incorporators when
applying for a charter
common stock - Answer-Part of paid-in capital representing the basic ownership equity
of the corporation. If the corporation has only one class of stock, it will be common stock
stock certificate - Answer-- Formal document issued to investors in a corporation that
shows the number of shares purchased
Unlimited Liability- - Answer-- Partners may be personally liable for debts of the
partnership
Liquidation- - Answer-- Occurs when a business is terminated, the assets are sold, and
liabilities and partners are paid off
Realization- - Answer-- The conversion of noncash assets into cash in the liquidation
process.
Define blank endorsement - Answer-Anyones signature to claim check
Define special (full) endorsement - Answer-Designated to specific person to cash check
Define qualified endorsement - Answer-Limits the liability of the endorsement
Who is the drawer? - Answer-The person who writes a check
