Test Bank for Fundamentals of Corporate Finance, 7th Canadian Edition Brealey (All Chapters included)
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Course
ACCT
Institution
ACCT
Complete Test Bank for Fundamentals of Corporate Finance, 7th Canadian Edition by Richard A. Brealey, Stewart C. Myers, Alan J. Marcus, Devashis Mitra, Dinesh Gajurel ; ISBN13: 9781259272011. (Full Chapters included Chapter 1 to 26)....
Chapter 1-Goals and Governance of the Firm.
Chapter 2-Financ...
Fundamentals of Corporate
Finance, 7th Canadian Edition by
Richard A. Brealey
Complete Chapters Test Bank
are included (Ch 1 to 26)
** Immediate Download
** Swift Response
** All Chapters included
,Chapter 01 - Goals and Governance of the Firm
Chapter 01
Goals and Governance of the Firm
True / False Questions
1. To obtain the necessary money a company sells financial assets or securities.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-02 Distinguish between real and financial assets.
Topic: 01-03 The Financing Decision
2. The liability of sole proprietors is limited to the amount of their investment in the
company.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Cite some of the advantages and disadvantages of organizing a business as a corporation.
Topic: 01-06 Sole Proprietorships
3. General partners have limited personal liability for business debts in a limited partnership.
FALSE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-03 Cite some of the advantages and disadvantages of organizing a business as a corporation.
Topic: 01-07 Partnerships
1-1
, Chapter 01 - Goals and Governance of the Firm
4. The corporate form of business organization is often accompanied by separation of
ownership and management.
TRUE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Cite some of the advantages and disadvantages of organizing a business as a corporation.
Topic: 01-04 What Is a Corporation?
5. A major disadvantage of partnerships is that they have "double taxation" of profits.
FALSE
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: Easy
Learning Objective: 01-03 Cite some of the advantages and disadvantages of organizing a business as a corporation.
Topic: 01-07 Partnerships
6. Capital budgeting decisions are used to determine how to raise the cash necessary for
investments.
FALSE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-01 Give examples of the investment and financing decisions that financial managers make.
Learning Objective: 01-02 Distinguish between real and financial assets.
Topic: 01-02 The Investment (Capital Budgeting) Decision
7. As your firm grows, you may decide to form a corporation. You may incorporate your firm
federally, under the Canadian Business Corporation Act, or provincially, under the relevant
provincial laws.
TRUE
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: Medium
Learning Objective: 01-03 Cite some of the advantages and disadvantages of organizing a business as a corporation.
Topic: 01-04 What Is a Corporation?
1-2
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