BCOR 3020 – FINAL Exam Practice Questions and Answers
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Module
BCOR
Institution
BCOR
BCOR 3020 – FINAL Exam Practice
Questions and Answers
The Legal life of a corporation is: - Answer️️ -permanent, regardless of
current ownership
What gives a corporation its permanence? - Answer️️ -separation of
ownership and control
Which of the following best describes the concept...
a) not accepting any new capital budgeting projects
b) investing in intangible assets
c) issuing stock to repay debt
d) becoming a limited liability company - Answer✔️✔️-c) issuing stock to
repay debt
An example of a firm's financing decision would be:
A) deciding whether or not to increase the price of its products.
B) acquiring a competitive firm.
C) determining how much to pay for a specific asset.
D) selling new shares of stock to buy an office building. - Answer✔️✔️-D)
selling new shares of stock to buy an office building.
Company cost of capital is best described as: - Answer✔️✔️-the expected
return investors require to invest money with a specific company.
Which of the following would be considered a capital budgeting decision:
A) issuing debt in the form of long-term bonds
B) spending $2 million on a new product line
2
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