LATEST EDITION
FIN 515: Final Exam SET 2: WITH VERIFIED QUESTIONS AND
ACCURATE ELABORATIONS. GRADED A+
Page 1
Question 1.1. (TCO A) Double taxation is a drawback for which of the following types of
business organization except? (Points : 5)
S corporation
C corporation
Limited partnership correct answer
Limited liability company
Question 2.2. (TCO A) Sole proprietorships have all of the following advantages
except (Points : 5)
easy to set up.
single taxation of income.
limited liability.
LATEST EDITION
, LATEST EDITION
ownership and control are not separated. Correct answer
Question 3.3. (TCO B) Which of the following would cause the present value of an annuity to
decrease? (Points : 5)
Reducing the number of payments.
Increasing the number of payments. Correct answer
Decreasing the interest rate.
Decreasing the liquidity of the payments.
Question 4.4. (TCO B) In a TVM calculation, if incoming cash flows are positive, outgoing
cash flows must be (Points : 5)
positive.
negative. Correct answer
either positive or negative. It really doesn’t matter.
stated in time units that are different from the time units in which the interest rates are
LATEST EDITION
FIN 515: Final Exam SET 2: WITH VERIFIED QUESTIONS AND
ACCURATE ELABORATIONS. GRADED A+
Page 1
Question 1.1. (TCO A) Double taxation is a drawback for which of the following types of
business organization except? (Points : 5)
S corporation
C corporation
Limited partnership correct answer
Limited liability company
Question 2.2. (TCO A) Sole proprietorships have all of the following advantages
except (Points : 5)
easy to set up.
single taxation of income.
limited liability.
LATEST EDITION
, LATEST EDITION
ownership and control are not separated. Correct answer
Question 3.3. (TCO B) Which of the following would cause the present value of an annuity to
decrease? (Points : 5)
Reducing the number of payments.
Increasing the number of payments. Correct answer
Decreasing the interest rate.
Decreasing the liquidity of the payments.
Question 4.4. (TCO B) In a TVM calculation, if incoming cash flows are positive, outgoing
cash flows must be (Points : 5)
positive.
negative. Correct answer
either positive or negative. It really doesn’t matter.
stated in time units that are different from the time units in which the interest rates are
LATEST EDITION
