Fin571

Multiple Choice Question 42

Which of the following business organizational forms subjects the owner(s) to unlimited liability?

a) sole proprietorship

b) partnership

c) corporation

d) a and b

Which of the following business organizational forms is easiest to raise capital?

a) sole proprietorship

b) partnership

c) corporation

d) a and b

Which organizational form best enables the owners of the firm to monitor the actions of other owners of the same firm?

partnership

sole proprietorship

private corporation

public corporation

Which of the following factors or activities can be controlled by the management of the firm?

The level of economic activity.

The level of interest rates.

Stock market conditions.

Capital budgeting.

The legal system and market forces impose substantial costs on individuals and institutions that engage in unethical behavior. Which of the following would not be an example of the above?

Agency conflicts.

Legal fines.

Jail time.

Financial losses.

The most common reason that corporate firms use the futures and options markets is

to make deposits.

to hedge risk.

none of these.

to take risk

Galan Associates prepared its financial statement for 2008 based on the information given here. The company had cash worth $1,234, inventory worth $13,480, and accounts receivables of $7,789. The company's net fixed assets are $42,331, and other assets are $1,822. It had accounts payables of $9,558, notes payables of $2,756, common stock of $22,000, and retained earnings of $14,008. How much long-term debt does the firm have?

$18,334

$54,342

$12,314

$76,342

Tre-Bien Bakeries generated net income of $233,412 this year. At year end, the company had accounts receivables of $47,199, inventory of $63,781, and cash of $21,461. It also had accounts payables of $51,369, short-term notes payables of $11,417, and...