fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
B) General partnership.
C) Limited partnership.
D) Sole proprietorship.
E) The form of business organization does NOT affect the ability to raise capital.
124) Robert Fischer is one of the owners of a firm which generated $18,000 in taxable income last year. Robert did not have to pay any personal tax on his share of the firm's income. Robert must be a partial owner of a:
A) Sole proprietorship.
B) General partnership.
C) Limited partnership.
D) Non-dividend paying corporation.
E) Limited liability company.
125) Which type of business organization has all the respective rights and privileges of a legal person?
A) Sole proprietorship.
B) General partnership.
C) Limited partnership.
D) Corporation.
E) Limited liability company.
126) Which form of business structure faces the greatest agency problems?
A) Sole proprietorship.
B) General partnership.
C) Limited partnership.
D) Corporation.
E) Limited liability company.
127) Which of the following are advantages of the corporate form of ownership?
A) Limited personal liability and limited firm life.
B) Ability to raise capital and limited firm life.
C) Limited personal liability and ability to raise capital.
D) Ease of ownership transfer and simplicity of company formation.
E) Simplicity of company formation and the ability to raise capital.
128) Working capital management is concerned with which statement of financial position accounts?
A) Current assets only.
B) Current and long-term assets only.
C) Long-term assets only.
D) Current assets and current liabilities only.
E) Current assets, long-term assets and current liabilities only.
129) Conflicts that arise between the interests of managers and stockholders are referred to as:
A) Control problems.
B) Agency problems.
C) Management conflicts.
D) Stockholder conflicts.
E) Proxy fights.
130) Which of the following is a capital structure decision?
A) Acquiring funds for the company’s ventures.