Business Law (BU231) Final Exam Review – With Questions & Answers (100% Verified)
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Course
Mergers and Acquisitions
Institution
Mergers And Acquisitions
Business Law (BU231) Final Exam Review – With Questions & Answers (100% Verified)
Business Law (BU231) Final Exam Review – With Questions & Answers (100% Verified)
Liabilities are defined as: - ANSWER - amounts owed to lenders or creditors.
Assets are defined as: - ANSWER - economic reso...
, Business Law (BU231) Final Exam
Review – With Questions & Answers
(100% Verified)
Liabilities are defined as: - ANSWER - amounts owed to lenders or creditors.
Assets are defined as: - ANSWER - economic resources of a company.
Which of the following does NOT describe Stockholders' Equity?
A. Money lent to a business
B. Money invested in a business by its owners
C. The owners' claim on the assets of a company
D. Profits retained in the business - ANSWER - A. Money lent to a business
Which of the following is NOT an asset?
A. Buildings
B. Net income
C. Cash
D. Inventory - ANSWER - B. Net income
Net income is defined as: - ANSWER - revenue less expenses.
What do we call amounts of money borrowed from lenders? - ANSWER - Liability
Stockholder's Equity represents: - ANSWER - an initial investment of cash by the
owners.
-and-
retention of profits by a firm.
A business may be either a for − profit business or a not − for − profit business. -
ANSWER - True
True or False: A business with one owner is called a sole proprietorship and it must
be a service business. - ANSWER - False
True or False: Shareholders must pay income tax on the dividends they have
received from a corporation. - ANSWER - True
True or False: A limited liability company (LLC) is a legal entity like a corporation, but
the income is taxed like a sole proprietorship or partnership. - ANSWER - True
Which of the following is a disadvantage of the corporate form of business? -
ANSWER - Double taxation
Which type of organization has stockholders? - ANSWER - Corporations
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