Fin534 Quiz 1

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FIN 534
QUIZ 1

(I HOPE THIS HELPS)

Question 1
.

2 out of 2 points


Which of the following statements is CORRECT?
Answer

Selected Answer:


It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship.


Correct Answer:


It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship.


.

Question 2
.

2 out of 2 points


Which of the following statements is CORRECT?
Answer

Selected Answer:


One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.


Correct Answer:


One advantage of forming a corporation is that equity investors are usually exposed to less liability than in a regular partnership.


.

Question 3
.

2 out of 2 points


You recently sold to your brother 200 shares of Disney stock, and the transfer was made through a broker, and the trade occurred on the NYSE. This is an example of:
Answer

Selected Answer:


A secondary market transaction.


Correct Answer:


A secondary market transaction.


.

Question 4
.

2 out of 2 points


Which of the following statements is CORRECT?
Answer

Selected Answer:


Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.


Correct Answer:


Sole proprietorships and partnerships generally have a tax advantage over many corporations, especially large ones.


.

Question 5
.

2 out of 2 points


The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to
Answer

Selected Answer:


Maximize the stock price per share over the long run, which is the stock’s…...

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