fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
E) The size, timing, and risk of the project cash flows.
143) Luis has just decided that his firm should obtain $10 million in bank financing from the Atlantic Bank and should issue $25 million in new equity shares. Luis has just made a(n) _____ decision.
A) Working capital
B) Capital structure
C) Operational
D) Capital budgeting
E) Marketing
144) Which of the following is false regarding employee stock options?
A) It allows management to purchase shares at a fixed price over a period of time.
B) It provides the manager with an ownership stake in the company.
C) Stock options are meant to align the manager’s actions with shareholders’ interests.
D) Stock options can be given after the manager has worked in the firm for a period of time.
E) Stock options disincentivize managers to work harder to enhance firm value.
145) Which of the following is a true statement concerning a general partnership?
A) Partners are not responsible for the debts of the partnership.
B) The income of a partnership is taxed at the partners' income tax rate.
C) Partners generally do not manage the partnership.
D) Partnerships have unlimited lives similar to corporations.
E) Partnerships are taxed at the corporate level.
146) The rules by which corporations govern themselves are called:
A) Indenture provisions.
B) Indemnity provisions.
C) Partnership agreements.
D) Bylaws.
E) Articles of incorporation.
147) An unincorporated business owned by a single individual is called a(n):
A) Corporation.
B) Sole proprietorship.
C) Partnership.
D) Closed receivership.
E) Open structure.
148) A business formed by two or more individuals or entities is called a(n):
A) Corporation.
B) Sole proprietorship.
C) Partnership.
D) Closed receivership.
E) Open structure.
149) A business created as a distinct legal entity composed of one or more individuals or entities is called a(n):
A) Corporation.
B) Sole proprietorship.
C) Partnership.
D) Closed receivership.