fundamentals of corporate finance 11th canadian edition By Stephen A. Ross Test bank
E) Open structure.
150) Which one of the following statements is correct?
A) Both partnerships and corporations incur double taxation.
B) Both sole proprietorships and partnerships are taxed in a similar fashion.
C) Partnerships are the most complicated type of business to form.
D) Both partnerships and corporations have bylaws.
E) All types of business formations have limited lives.
151) Margie has just been promoted to the position of working capital manager. As part of her duties, Margie will be responsible for:
A) Allocating manufacturing overhead.
B) Controlling labour costs.
C) Pricing manufactured goods.
D) Managing long-term debt.
E) Overseeing accounts payable.
152) A(n) _______ is a sale of securities which typically does not require registration with the OSC.
A) Initial public offering.
B) Over-the-counter transaction.
C) Primary market transaction.
D) Secondary market transaction.
E) Private placement.
153) The controller can be defined as the person who is generally responsible for overseeing the _____ of a firm.
A) Cash balances.
B) Capital expenditures.
C) Production functions.
D) Accounting functions.
E) Financial planning.
154) The primary purpose of an auction market is to:
A) Offer new shares of stock to the public.
B) Handle private placements of shares of stock.
C) Provide a marketplace for dealers.
D) Provide electronic trading for dealers.
E) Match buyers with sellers.
155) What are the two types of primary market transactions that Corporations engage in?
A) Primary and secondary placements.
B) Debt and equity placements.
C) Public offerings and private placements.
D) Staggered and orderly offerings.
E) Dutch auctions and orderly offerings.
156) Which of the following is disadvantage of a sole proprietorship?
A) The owner receiving all the after-tax profit.
B) Unlimited liability.
C) Quick decision making.
D) Can be created through a simple business license.