Exam (elaborations)
Financial Management Theory and Practice 15th Edition Eugene Brigham - Test Bank
- Module
- Financial Management
- Institution
- Financial Management
Complete Test Bank (with Questions Answers)
[Show more]
Content preview
,Ch 01 An Overview of Financial Management and the Financial Environment1. The form of organization for a business is not an important issue, as this decision has very little effect on the income
and wealth of the firm's owners.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECT FMTP.EHRH.17.01.03 - LO: 1-3
IVES:
NATIONAL STANDA United States - BUSPROG: Reflective Thinking
RDS:
STATE STANDARDS United States - AK - DISC: Goals of the firm, role of - DISC: Goals of the firm, role of finance, and
: analysis of public information
LOCAL STANDARDSUnited States - OH - Default City - TBA
:
TOPICS: Firm organization
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 8/26/2015 10:43 AM
DATE MODIFIED: 8/26/2015 10:43 AM
QUESTION ID: JFND-GO4G-EO5U-ECKG
QUESTION G GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBAL ID: GO3D-EA3O-CJDI-GWN8-EPRW-EMJW-CRHU-C3B3-CO4S-RCBA-CWSU-N3JI-CRSU-N3B3-
GOSU-NA5D-CCSU-OATA-GBTG-ECDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
2. 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
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECT FMTP.EHRH.17.01.03 - LO: 1-3
IVES:
NATIONAL STANDA United States - BUSPROG: Reflective Thinking
RDS:
STATE STANDARDS United States - AK - DISC: Goals of the firm, role of - DISC: Goals of the firm, role of finance, and
: analysis of public information
LOCAL STANDARDSUnited States - OH - Default City - TBA
:
TOPICS: Firm organization
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 8/26/2015 10:43 AM
Cengage Learning Testing, Powered by Cognero Page 1
,Ch 01 An Overview of Financial Management and the Financial Environment
DATE MODIFIED: 8/26/2015 10:43 AM
QUESTION ID: JFND-GO4G-EO5U-ECKF
QUESTION G GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBAL ID: GO3D-EA3O-CJDI-GWN8-EPRW-EMMG-GOHG-EPMF-GJOU-GA3T-GASS-EP3U-8RSS-RPTT-
GOSU-GATT-GRSS-RC3O-CR3U-KPMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
3. 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
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECT FMTP.EHRH.17.01.03 - LO: 1-3
IVES:
NATIONAL STANDA United States - BUSPROG: Reflective Thinking
RDS:
STATE STANDARDS United States - AK - DISC: Goals of the firm, role of - DISC: Goals of the firm, role of finance, and
: analysis of public information
LOCAL STANDARDSUnited States - OH - Default City - TBA
:
TOPICS: Partnership
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 8/26/2015 10:43 AM
DATE MODIFIED: 8/26/2015 10:43 AM
QUESTION ID: JFND-GO4G-EO5U-ECKR
QUESTION G GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBAL ID: GO3D-EA3O-CJDI-GWN8-EPRW-EMJI-GFOS-K3TI-GYAG-EPUG-COSS-KPJS-CESU-CPT3-GOSS-
R3UR-CESU-YPMB-GC4S-GQJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
4. 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
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECT FMTP.EHRH.17.01.03 - LO: 1-3
IVES:
NATIONAL STANDA United States - BUSPROG: Reflective Thinking
RDS:
Cengage Learning Testing, Powered by Cognero Page 2
, Ch 01 An Overview of Financial Management and the Financial Environment
STATE STANDARDS United States - AK - DISC: Goals of the firm, role of - DISC: Goals of the firm, role of finance, and
: analysis of public information
LOCAL STANDARDSUnited States - OH - Default City - TBA
:
TOPICS: Proprietorship
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 8/26/2015 10:43 AM
DATE MODIFIED: 8/26/2015 10:43 AM
QUESTION ID: JFND-GO4G-EO5U-ECKD
QUESTION G GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBAL ID: GO3D-EA3O-CJDI-GWN8-EPRW-EMJW-CCHU-CQJO-CA5U-EA31-COSS-CCJI-CESS-KAJ3-GOSU-
GP3O-GRSU-GPBT-GE5G-RPBU-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
5. One key value of limited liability is that it lowers owners' risks and thereby enhances a firm's value.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECT FMTP.EHRH.17.01.03 - LO: 1-3
IVES:
NATIONAL STANDA United States - BUSPROG: Reflective Thinking
RDS:
STATE STANDARDS United States - AK - DISC: Goals of the firm, role of - DISC: Goals of the firm, role of finance, and
: analysis of public information
LOCAL STANDARDSUnited States - OH - Default City - TBA
:
TOPICS: Limited liability
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 8/26/2015 10:43 AM
DATE MODIFIED: 8/26/2015 10:43 AM
QUESTION ID: JFND-GO4G-EO5U-ECJU
QUESTION G GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBAL ID: GO3D-EA3O-CJDI-GWN8-EPRW-EMJI-C3OS-CPMR-GW5U-N3BA-GOSU-OAMR-CRSU-GATI-
GOSU-QCJW-GOSU-ECJW-GITD-ECJA-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE
6. 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
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Moderate
Cengage Learning Testing, Powered by Cognero Page 3
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 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 premiumbiz379. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £20.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67866 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now