Wgu D362 Corporate Finance section1 Test questions with 100% Correct Solutions
0 view 0 purchase
Course
D362 Corporate Finance
Institution
D362 Corporate Finance
What is a key difference between C-corporations and S-corporations?
C-corporations can be owned by other types of companies and are easily acquired, while
S-corporations cannot be acquired.
Owners of S-corporations have limited liability, while owners of C-corporations have
unlimited liability....
Wgu D362 Corporate Finance section1 Test
questions with 100% Correct Solutions
What is a key difference between C-corporations and S-corporations?
C-corporations can be owned by other types of companies and are easily acquired, while
S-corporations cannot be acquired.
Owners of S-corporations have limited liability, while owners of C-corporations have
unlimited liability.
An S-corporation is the default corporation when articles of incorporation are filed in a
state, but C-corporations require an additional forms.
S-corporations must pay taxes on the income they earn; all profits earned by C-
corporations pass directly to the stockholders. - Answer rrect
Answer
Correct:If an organization has a desire to be bought out by another company, it should
form as a C-corporation to make the future process easier.
A person wants to start a coffee shop. Initial funding came from the entrepreneur, but
more funds are required to open the coffee shop. The entrepreneur receives the
remaining seed money from friends and family.
Which capitalization strategy did the entrepreneur use?
Yield capitalization
Bootstrapping
Direct capitalization
Venture capital - Answer Correct:Bootstrapping happens when an entrepreneur invests
money, but also gets additional funds from friends, family, or credit card loans.
, Which strategy refers to the process of making multiple payments across time to allow
an opportunity to reassess performance at each point?
Staged funding
Syndication
Yield capitalization
Bootstrapping - Answer This strategy refers to providing seed funding so a prototype
can be built and tested. Based on the prototype's success, additional funds may be
provided.
Which capitalization strategy would a company use if it needed large sums of capital, or
if an entrepreneur is ready to sell some or all its investment?
Staged funding
Strategic buyer
Initial Public Offering (IPO)
Syndication - Answer A company can offer its first sale of common stock in the market
to raise large sums of capital.
The Chief Financial Officer (CFO) of a toy company is considering purchasing a new piece
of machinery to make manufacturing one of its toy lines more efficient and sustainable.
Which type of decision does this scenario involve?
Working capital management decisions
Capital structure decisions
Capital budgeting decisions
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Examsplug. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
