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.
Topic: Introduction to Corporate Finance Quiz ( MCQ and Answer )
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?
Which one of the following statements concerning a sole proprietorship is correct?
Which one of the following is a working capital management decision?
The decision to issue additional shares of stock is an example of which one of the following?
Which one of the following is a capital structure decision?
Which one of the following is a capital budgeting decision?
Which one of the following correctly defines the upward chain of command in a typical corporate organizational structure?
The controller of a corporation generally reports directly to the:
Which one of the following functions should be the responsibility of the controller rather than the treasurer?
- daily cash deposit
- income tax returns
- equipment purchase analysis
- customer credit approval
A stakeholder is:
Which one of the following terms is defined as a conflict of interest between the corporate shareholders and the corporate managers?