Which one of the following actions by a financial manager is most apt to create an agency problem?
Multiple Choice Quizzes with Answer in English (Page: 394)
A firm which opts to “go dark” in response to the Sarbanes-Oxley Act:
Which one of the following is an unintended result of the Sarbanes-Oxley Act?
The Sarbanes-Oxley Act of 2002 is a governmental response to:
Decisions made by financial managers should primarily focus on increasing which one of the following?
Why should financial managers strive to maximize the current value per share of the existing stock?
Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management?
Which one of the following best states the primary goal of financial management?
Sally and Alicia currently are general partners in a business located in Atlanta, Georgia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are each subjected. Which form of business entity should they consider to replace their general partnership assuming they wish to remain the only two owners of their business? Whichever organization they select, they wish to be treated equally.
Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations. Sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. Alfredo will be involved as an active consultant and manager and will also contribute funds. Sam and Alfredo are willing to accept liability for the firm’s debts as they feel they have nothing to lose by doing so. All three individuals will share in the firm’s profits and wish to keep the initial organizational costs of the business to a minimum.
Which form of business entity should these individuals adopt?
Which type of business organization has all the respective rights and privileges of a legal person?
Which one of the following business types is best suited to raising large amounts of capital?
Which one of the following characteristics applies to a limited liability company?
Corporate bylaws:
Which one of the following statements is correct?
Which one of the following statements is correct?
A limited partnership:
A general partner:
Which one of the following best describes the primary advantage of being a limited partner instead of a general partner?
Which one of the following statements concerning a sole proprietorship is correct?