Test Bank For Corporate Finance The Core, 5th Edition by Jonathan Berk, Peter DeMarzo Chapter 1-19
Finance and Investment Summary (second half of course) for Economics Tilburg University. Grade achieved using summary: 9.5/10.
Alles voor dit studieboek
(102)
Geschreven voor
Corporate Finance, 5th Edition by Jonathan Berk, D
Alle documenten voor dit vak (1)
Verkoper
Volgen
ASolution
Ontvangen beoordelingen
Voorbeeld van de inhoud
Created By: Irfan Ali
Test Bank for Corporate Finance, 5th Edition by
Jonathan Berk, DeMarzo Chapter 1-31 A++
Chapter 1: The Corporation
1.1 The Three Types of Firms
1) A sole proprietorship is owned by:
A) one person
B) two or more people
C) shareholders
D) bankers Answer: A
Diff: 1 Type: MC
Topic: 1.1 The Three Types of Firms
2) In Canada, which of the following organization forms accounts for the greatest number of
firms?
A) Limited Liability Partnership
B) Limited Partnership
C) Sole Proprietorship
D) Publicly Traded Corporation Answer: C
Diff: 1 Type: MC
Topic: 1.1 The Three Types of Firms
1
,Created By: Irfan Ali
3) Which of the following organization forms earns the most revenue?
A) Privately Owned Corporation
B) Limited Partnership
C) Publicly Owned Corporation
D) Limited Liability Company Answer: C
Diff: 1 Type: MC
Topic: 1.1 The Three Types of Firms
4) Which of the following is NOT an advantage of a sole proprietorship?
A) Single taxation
B) Ease of setup
C) Limited liability
D) No separation of ownership and control Answer: C
Diff: 2 Type: MC
Topic: 1.1 The Three Types of Firms
5) Which of the following statements regarding limited partnerships is TRUE?
A) There is no limit on a limited partner's liability.
B) A limited partner's liability is limited by the amount of his investment.
C) A limited partner is not liable until all of the assets of the general partners have been
exhausted.
D) A general partner's liability is limited by the amount of his investment. Answer: B
Diff: 2 Type: MC
2
,Created By: Irfan Ali
Topic: 1.1 The Three Types of Firms
6) Which of the following is/are an advantage(s) of incorporation?
A) Access to capital markets
B) Limited liability
C) Unlimited life
D) All of the above Answer: D
Diff: 2 Type: MC
Topic: 1.1 The Three Types of Firms
7) In Canada, a limited liability partnership, LLP, is essentially:
A) a limited partnership without limited partners
B) a limited partnership without a general partner
C) just another name for a limited partnership
D) just another name for a corporation Answer: B
Diff: 1 Type: MC
Topic: 1.1 The Three Types of Firms
8) In Canada, which of the following business organization forms cannot avoid double
taxation?
A) Limited Partnership
B) Publicly Traded Corporation
C) Privately Owned Corporation
D) Limited Liability Company Answer: B
3
, Created By: Irfan Ali
Diff: 1 Type: MC
Topic: 1.1 The Three Types of Firms
9) In Canada, the dividend tax credit gives some relief by:
A) effectively giving a lower tax rate on dividend income than on other sources of income
B) effectively giving a higher tax rate on dividend income than on other sources of income
C) effectively giving the same tax rate on dividend income as on other sources of income
D) effectively giving a tax rate of zero on dividend income compared to other sources of
income Answer: A
Diff: 1 Type: MC
Topic: 1.1 The Three Types of Firms
10) Which of the following statements is most correct?
A) An advantage to incorporation is that it allows for less regulation of the business.
B) An advantage of a corporation is that it is subject to double taxation.
C) Unlike a partnership, a disadvantage of a corporation is that it has limited liability.
D) Corporations face more regulations when compared to partnerships. Answer: D
Diff: 2 Type: MC
Topic: 1.1 The Three Types of Firms
11) In Canada, the distinguishing feature of a corporation is that:
A) there is no legal difference between the corporation and its owners
B) it is a legally defined, artificial being, separate from its owners
4
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, creditcard of Stuvia-tegoed voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper ASolution. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €12,30. Je zit daarna nergens aan vast.