100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Test Bank for Corporate Finance, 8th Edition by Ehrhardt Brigham CA$41.09   Add to cart
Quickly navigate to
Preview
  2.  
  3. Corporate Finance
  4.  
  5. Corporate Finance

Exam (elaborations)

Test Bank for Corporate Finance, 8th Edition by Ehrhardt Brigham

1 review
 55 views  2 purchases
  • Course
  • Corporate Finance
  • Institution
  • Corporate Finance

Test Bank for Corporate Finance: A Focused Approach 8th Edition 8e by Michael C. Ehrhardt; Eugene F. Brigham. ISBN 4638 Full Chapters test bank included Chapter 1: An Overview of Financial Management and the Financial Environment 1-1 The Five-Minute MBA 1-2 Finance From 40,000 Feet Above 1...

[Show more]

Preview 1 out of 419  pages

Document information

  • July 10, 2023
  • 419
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • corporate
  • finance
  • focused
  • approach
  • 8th
  • edition
  • corporate finance
  • ehrhardt
  • brigham
  • multiple choice
  • mcqs
  • quizzes
  • quiz bank
  • tests
  • 8e
  • test bank
  • true
  • false
  • exam bank
  • practice quizzes
  • practice exams

Written for

  • Corporate Finance
  • Corporate Finance

1  review

review-writer-avatar

By: callisterbrown • 11 months ago

Seller

avatar-seller
Tutor247

Reviews received

Content preview

Name: Class: Date:

Chapter 01 8e

Indicate whether the statement is true or false.
1. The facts that a proprietorship, as a business, pays no corporate income tax, and that it is easily and inexpensively
formed, are two key advantages to that form of business.
a. True
b. False

2. If Firm A's business is to obtain savings from individuals and then invest them in financial assets issued by other
firms or individuals, Firm A is a financial intermediary.
a. True
b. False

3. The disadvantages associated with a proprietorship are similar to those under a partnership. One exception
relates to the more formal nature of the partnership agreement and the commitment of all partners' personal
assets. As a result, partnerships do not have difficulty raising large amounts of capital.
a. True
b. False

4. There are three primary disadvantages of a regular partnership: (1) unlimited liability, (2) limited life of the
organization, and (3) difficulty of transferring ownership. These combine to make it difficult for partnerships to
attract large amounts of capital and thus to grow to a very large size.
a. True
b. False

5. The major advantage of a regular partnership or a corporation as a form of business organization is the fact that
both offer their owners limited liability, whereas proprietorships do not.
a. True
b. False

6. Two disadvantages of a proprietorship are (1) the relative difficulty of raising new capital and (2) the owner's
unlimited personal liability for the business' debts.
a. True
b. False

7. Debt is a less risky than equity because a debtholder's claim has priority to an equity holder's claim.
a. True
b. False

8. If a firm's goal is to maximize its earnings per share, this is the best way to maximize the price of the common
stock and thus shareholders' wealth.
a. True
b. False




Page 1

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 Tutor247. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for CA$41.09. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

78600 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
CA$41.09  2x  sold
  • (1)
  Add to cart