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Solution Manual For Corporate Finance, 3rd Edition By Jonathan Berk And Peter DeMarzo ||Complete A+ Guide All Chapters $17.99
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Solution Manual For Corporate Finance, 3rd Edition By Jonathan Berk And Peter DeMarzo ||Complete A+ Guide All Chapters

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  • Corporate Finance, 3rd Edition

Solution Manual For Corporate Finance, 3rd Edition By Jonathan Berk And Peter DeMarzo ||Complete A+ Guide All Chapters

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  • October 8, 2024
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  • Corporate Finance, 3rd Edition
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TESTBANK FOR CORPORATE FINANCE, 3RD
v v v v




EDITION
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BY JONATHAN BERK AND PETER DEMARZO
v v v v v

,Corporate Finance, 3e (Berk/DeMarzo)
v v v


Chapter 1 The Corporation
v v vv v




1.1 The Four Types of Firms
v v v v




1) A sole proprietorship is owned by:
v v v v v


A) one person.
v


B) two of more persons.
v v v


C) shareholders.
D) bankers.
Answer: A
v v


Diff: 1
v v


Section: 1.1 The Four Types of Firms
v v v v v v


Skill: Definition
v v




2) Which of the following organization forms for a business does NOT avoid double taxation?
v v v v v v v v v v v v v


A) Limited partnership v


B) "C" corporation
v


C) "S" corporation
v


D) Limited liability company v v


Answer: B
v v


Diff: 1
v


Section: 1.1 The Four Types of
v v v v v


FirmsSkill: Conceptual
v v v




3) Which of the following organization forms accounts for the most revenue?
v v v v v v v v v v


A) "S" corporation
v


B) Limited partnership v


C) "C" corporation
v


D) Limited liability company v v


Answer: C
v v


Diff: 1
v


Section: 1.1 The Four Types of
v v v v v


FirmsSkill: Conceptual
v v v




4) Which of the following organization forms accounts for the greatest number of firms?
v v v v v v v v v v v v


A) "S" corporation
v


B) Limited partnership v


C) Sole proprietorship
v


D) "C" corporation
v


Answer: C
v v

,Diff: 1
v


Section: 1.1 The Four Types of
v v v v v


FirmsSkill: Conceptual
v v v

, 5) Which of the following is NOT an advantage of a sole proprietorship?
v v v v v v v v v v v


A) Single taxation v


B) Ease of setup v v


C) Limited liability v


D) No separation of ownership and control
v v v v v


Answer: C
v v


Diff: 2
v


Section: 1.1 The Four Types of
v v v v v


FirmsSkill: Conceptual
v v v




6) Which of the following statements regarding limited partnerships is TRUE?
v v v v v v v v v


A) There is no limit on a limited partner's liability.
v v v v v v v v


B) A limited partner's liability is limited by the amount of their investment.
v v v v v v v v v v v


C) A limited partner is not liable until all the assets of the general partners have been exhausted.
v v v v v v v v v v v v v v v v


D) A general partner's liability is limited by the amount of their investment.
v v v v v v v v v v v


Answer: B
v v


Diff: 2
v


Section: 1.1 The Four Types of
v v v v v


FirmsSkill: Conceptual
v v v




7) Which of the following is/are an advantage of incorporation?
v v v v v v v v


A) Access to capital markets v v v


B) Limited liability v


C) Unlimited life v


D) All of the above
v v v


Answer: D
v v


Diff: 2
v


Section: 1.1 The Four Types of
v v v v v


FirmsSkill: Conceptual
v v v




8) Which of the following statements is most correct?
v v v v v v v


A) An advantage to incorporation is that it allows for less regulation of the business.
v v v v v v v v v v v v v


B) An advantage of a corporation is that it is subject to double taxation.
v v v v v v v v v v v v


C) Unlike a partnership, a disadvantage of a corporation is that has limited liability.
v v v v v v v v v v v v


D) Corporations face more regulations when compared to partnerships.
v v v v v v v


Answer: D
v v


Diff: 2
v


Section: 1.1 The Four Types of
v v v v v


FirmsSkill: Conceptual
v v v

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