Test Bank for Corporate Finance
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Versionk1 1
,Chapter 1k
Student name:_
k k
MULTIPLEkCHOICEk-
kChoosekthekonekalternativekthatkbestkcompleteskthekstatementkork
answerskthekquestion.
1) Generally,kamongkthosekwhokreportkdirectlyktokthe
arekthektreasurerkandkthekcontrollerkofkakcorporation.
A) boardkofkdirectors
B) chairpersonkofkthekboard
C) chiefkexecutivekofficer
D) president
E) chiefkfinancialkofficer
2) Aktypicalkchainkofkcommandkinkakcorporationkiskdescribedkbykwhichkonekofkthekfollowingkst
atements?
A) Thekinformationksystemskmanagerkreportsktokthektreasurer.
B) Thekcreditkmanagerkreportsktokthektreasurer.
C) Thekcontrollerkreportsktokthekchiefkexecutivekofficer.
D) Thektaxkmanagerkreportsktokthektreasurer.
E) Thekcapitalkexpenditureskmanagerkreportsktokthekcontroller.
3) Answeringkwhichkonekofkthekfollowingkquestionskinvolveskmakingkakcapitalkbudgetingkd
ecision?
Versionk1 2
, A) Howkmuchkdebtkshouldkthekfirmkborrowkfromkakparticularklender?
B) Shouldkthekfirmkbuildkaknewkproductionkfacility?
C) Shouldkthekfirmkissueknewkequityktokpaykforkitskgrowthkgoals?
D) Howkmuchkinventorykshouldkthekfirmkkeepkonkhand?
E) Howkmuchkcreditkshouldkthekfirmkextendktokakparticularkcustomer?
4) Whichkonekofkthekfollowingkstatementskiskaccurate?
A) Netkworkingkcapitalkequalskcurrentkassetskpluskcurrentkliabilities.
B) Currentkliabilitieskarekdebtskthatkmustkbekrepaidkink18kmonthskorkless.
C) Currentkassetskarekassetskwithkshortklives,ksuchkaskaccountskreceivable.
D) Long-termkdebtkiskdefinedkaskakresidualkclaimkonkakfirm’skassets.
E) Tangiblekassetskarekfixedkassetsksuchkaskpatents.
5) Amongkthektypicalkresponsibilitieskofkthekcorporatekcontrollerkis:
A) capitalkexpenditureskmanagement.
B) cashkmanagement.
C) taxkreporting.
D) financialkplanning.
E) creditkmanagement.
6) k isktypicallykthekresponsibilitykofkthekcorporatektreasurer.
A) Financialkplanning
B) Costkaccounting
C) Taxkreporting
D) Informationksystems
E) Financialkaccounting
7) Akfirm’s define(s)kitskcapitalkstructure.
Versionk1 3
, A) mixturekofkvariousktypeskofkproductionkequipment
B) investmentkselectionskforkitskexcesskcashkreserves
C) combinationkofkcashkandkcashkequivalents
D) combinationkofkaccountskappearingkonkthekleftksidekofkitskbalanceksheet
E) proportionskofkfinancingkfromkdebtkandkequity
8) Thekfocuskofkshort-termkfinancekiskon:
A) thektimingkofkcashkflows.
B) acquiringkandksellingkfixedkassets.
C) financingklong-termkprojects.
D) capitalkbudgeting.
E) issuingkadditionalkshareskofkcommonkstock.
9) Netkworkingkcapitalkincludes:
A) copyrights.
B) manufacturingkequipment.
C) commonkstock.
D) long-termkdebt.
E) inventory.
10) k iskdefinedkaskplanningkandkmanagingkakfirm’sklong-termkassets.
A) Workingkcapitalkmanagement
B) Cashkmanagement
C) Costkaccountingkmanagement
D) Capitalkbudgeting
E) Capitalkstructurekmanagement
11) Ankamountkthekfirmskowes,kwhichkitkmustkrepaykwithinktwelvekmonths,kiskcalledka(n):
Versionk1 4
, A) currentkliability.
B) long-termkdebt.
C) intangiblekasset.
D) accountskreceivable.
E) currentkasset.
12) Thekbusinesskentitykthatkisktypicallykthekleastkexpensivektokformkiskthe:
A) limitedkliabilitykcompany.
B) jointkstockkcompany.
C) generalkpartnership.
D) limitedkpartnership.
E) solekproprietorship.
13) A iskakbusinesskownedkbykaksinglekindividual.
A) corporation
B) solekproprietorship
C) generalkpartnership
D) limitedkpartnership
E) limitedkliabilitykcompany
14) Regardingkaksolekproprietorship,kwhichkonekofkthekfollowingkstatementskiskaccurate?
A) Itkiskmorekdifficultktokformkthankotherkformskofkbusiness.
B) Itskbusinesskprofitskarektaxedktwicekatkthekfederalklevel.
C) Itskbusinesskprofitskarektaxedkseparatelykfromkthekpersonalkincomekofkthekowner.
D) Thekownerkmaykbekforcedktoksellkhiskorkherkpersonalkassetsktokpaykthekcompany's
debts.
E) Itkhaskankunlimitedklifekspan.
15) Regardingkaksolekproprietorship,kwhichkonekofkthekfollowingkstatementskiskaccurate?
Versionk1 5
, A) Thekabilityktokraisekcapitalkisklimitedkbykthekowner’skpersonalkwealth.
B) Itkpaysktaxeskatkthekcorporatektaxkrate.
C) Ownershipkofkthekfirmkiskeasyktoktransferktokanotherkindividual.
D) Itkmustkpaykincomektaxeskseparatelykfromkthektaxeskpaidkbykthekowner.
E) Theklegalkcostsktokformkitkarekusuallyksubstantial.
16) Thekprimarykadvantagekofkbeingkaklimitedkpartnerkratherkthankakgeneralkpartnerkis:
A) beingkentitledktokaklargerkportionkofkthekpartnership’skincome.
B) havingkresponsibilitykforkday-to-daykmanagementk ofkthekbusiness.
C) earningkprofitskthatkarekfreekfromkincomektaxation.
D) thekabilityktokhavekoverallkcontrolkofkthekpartnership.
E) one’skpersonalkfinancialkliabilitykisklimitedktokthekamountkofkcapitalkinvested.
17) Akgeneralkpartner:
A) hasklessklegalkliabilitykthankaklimitedkpartner.
B) cankendkthekpartnershipkbykwithdrawing.
C) faceskdoublektaxationkofkprofitskwhereaskaklimitedkpartnerkdoesknot.
D) cannotklosekmorekthankthekamountkofkhiskorkherkequitykinvestment.
E) iskthektermkappliedkonlyktokcorporationskthatkinvestkinkpartnerships.
18) Akpartnership:
A) isktaxedkinktheksamekfashionkthatkakcorporationkisktaxed.
B) terminateskuponkthekdeathkofkanyklimitedkpartner.
C) createskforkallkgeneralkpartnerskankunlimitedkliabilitykforkthekpartnership'skdebts.
D) hasktheksamekabilitykaskakcorporationktokraisekcapital.
E) allowskforkeasyktransferkofkownershipkfromkonekgeneralkpartnerktokanother.
19) Onekadvantagekofkakpartnershipkiskthe:
Versionk1 6
, A) personalkliabilitykforkallkofkthekfirm’skdebts.
B) limitedklifekofkthekentity.
C) limitedkliabilitykprotectionkforkallkofkthekpartners.
D) relativelyklowkcostkofkformation.
E) easekofktransferringkfullkownershipktokothers.
20) Onekdisadvantagekofkthekcorporatekformkofkbusinesskownershipkiskthe:
A) limitedkliabilitykprotectionkprovidedkforkallkowners.
B) firm’skabilityktokraisekcash.
C) unlimitedklifekofkthekfirm.
D) difficultieskencounteredkwhenkchangingkownership.
E) doublektaxationkofkbusinesskprofits.
21) Whichkonekofkthekfollowingkstatementskiskcorrect?
A) Bothkpartnershipskandkcorporationskareksubjectktokdoublektaxation.
B) Solekproprietorshipskandkpartnershipskarektaxedkinkaksimilarkfashion.
C) Partnershipskarekthekmostkcomplicatedktypekofkbusinessktokform.
D) Bothkpartnershipskandkcorporationskhaveklimitedkliabilitykforkallkowners.
E) Allktypeskofkbusinesskformationskhaveklimitedklives.
22) Thekarticleskofkincorporation:
A) cankbekusedktokremovekthekfirm’skmanagement.
B) arekamendedkannuallykbykthekfirm’skstockholders.
C) setkforthkthekrightskgrantedktokshareholders.
D) setkforthkthekruleskbykwhichkthekcorporationkregulateskitskexistence.
E) canksetkforthkthekconditionskunderkwhichkthekfirmkcankavoidkdoublektaxation.
23) Corporatekbylaws:
Versionk1 7
, A) establishktheknamekofkthekcorporation.
B) establishkthekrightskgrantedktok itskshareholders.
C) setkforthkthekpurposekofkthekfirm.
D) establishkthekruleskbykwhichkthekcorporationkregulateskitskexistence.
E) setkforthktheknumberkofkmemberskofkthekinitialkboardkofkdirectors.
24) Regardingkcorporations,kwhichkonekofkthekfollowingkstatementskiskaccurate?
A) Afterkakpredeterminedknumberkofkyears,kownershipkcanknoklongerkbektransferred.
B) Thekabilityktokraisekcapitalkisklimitedkbykthekpersonalkwealthkofkthekowners.
C) Primarykshareholderskhavekunlimitedkliabilitykforkcorporatekdebts.
D) Thekentitykcankoutlivekallkofkitskinitialkowners.
E) Whenktheklastkoriginalkownerkdieskorkwithdraws,kthekentitykiskterminated.
25) Ifkakbusinesskiskformedkaskakcorporation,kownershipkofkthek business:
A) mustkbekgrantedkwithkequalkrightskassignedktokeachkandkeverykshareholder.
B) cankbektransferredkankunlimitedknumberkofktimes.
C) cankonlykbektransferredkwithkthekapprovalkofkthekboardkofkdirectors.
D) iskcontrolledkbykthekcorporatekofficers.
E) mustkbekheldkbyknon-managementkowners.
26) Thekownerskofkaklimitedkliabilitykcompanyktypicallykwouldkpreferkto:
A) bektaxedklikekakcorporation.
B) havekliabilitykexposureksimilarktokthatkofkaksolekproprietor.
C) bektaxedkpersonallykonkallkbusinesskincome.
D) havekliabilitykexposureksimilarktokthatkofkakgeneralkpartner.
E) bektaxedklikekakcorporation,kandkhavekliabilityklikekakpartnership.
27) Inkakgeneralkpartnership,kthekgeneralkpartnerskhave
liabilitykforkthekfirm’skdebtskandkhave controlkoverkday-to-
daykoperations.
Versionk1 8
, A) limited;kno
B) unlimited;ktotal
C) limited;ktotal
D) unlimited;kno
E) unlimited;klimited
28) Whichkonekofkthekfollowingkbusinessktypeskiskbestkforkraisingklargekamountskofkcapital?
A) Solekproprietorship
B) Limitedkliabilitykcompany
C) Corporation
D) Generalkpartnership
E) Limitedkpartnership
29) Whichktypekofkbusinesskorganizationkhasktheksamekrightskandkprivilegeskaccordedktokakl
egalkperson?
A) Solekproprietorship
B) Generalkpartnership
C) Limitedkpartnership
D) Corporation
E) Limitedkliabilitykcompany
30) A
iskakbusinesskformedkbyktwokorkmorekindividualskwhokeachkhavekunlimitedkpersonalkliabil
itykforkallkofkthekfirm’skdebts.
A) corporation
B) solekproprietorship
C) generalkpartnership
D) limitedkpartnership
E) limitedkliabilitykcompany
Versionk1 9
, 31) The
describeskthekfractionkofkthekworkkandkcashktokbekcontributedktokakpartnershipkbyke
achkmemberkofkthatkpartnership.
A) indemnitykclause
B) indenturekcontract
C) statementkofkpurpose
D) partnershipkagreement
E) groupkcharter
32) A(n) iskakbusinesskcreatedkaskakdistinctklegalkentity,kseparatekfromkitskowners.
A) corporation
B) solekproprietorship
C) generalkpartnership
D) limitedkpartnership
E) unlimitedkliabilitykcompany
33) Inkaklimitedkpartnership,keachklimitedkpartner’skliabilitykforkthekpartnership’skdebtskis:
A) limitedktokhiskorkherkpersonalknetkworth.
B) limitedktokthekamountkhekorkshekinvestedkintokthekpartnership.
C) limitedktokhiskorkherktotalkearningskreceivedkfromkthekpartnership.
D) unlimited.
E) limitedktokthektotalkamountkinvestedkbykallkpartners.
34) A
provideskeachkownerkwithklimitedkliability,kandkiskoperatedkandktaxedklikekakpartnership.
A) limitedkliabilitykcompany
B) generalkpartnership
C) limitedkproprietorship
D) limitedkpartnership
E) corporation
Versionk1 10
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Versionk1 1
,Chapter 1k
Student name:_
k k
MULTIPLEkCHOICEk-
kChoosekthekonekalternativekthatkbestkcompleteskthekstatementkork
answerskthekquestion.
1) Generally,kamongkthosekwhokreportkdirectlyktokthe
arekthektreasurerkandkthekcontrollerkofkakcorporation.
A) boardkofkdirectors
B) chairpersonkofkthekboard
C) chiefkexecutivekofficer
D) president
E) chiefkfinancialkofficer
2) Aktypicalkchainkofkcommandkinkakcorporationkiskdescribedkbykwhichkonekofkthekfollowingkst
atements?
A) Thekinformationksystemskmanagerkreportsktokthektreasurer.
B) Thekcreditkmanagerkreportsktokthektreasurer.
C) Thekcontrollerkreportsktokthekchiefkexecutivekofficer.
D) Thektaxkmanagerkreportsktokthektreasurer.
E) Thekcapitalkexpenditureskmanagerkreportsktokthekcontroller.
3) Answeringkwhichkonekofkthekfollowingkquestionskinvolveskmakingkakcapitalkbudgetingkd
ecision?
Versionk1 2
, A) Howkmuchkdebtkshouldkthekfirmkborrowkfromkakparticularklender?
B) Shouldkthekfirmkbuildkaknewkproductionkfacility?
C) Shouldkthekfirmkissueknewkequityktokpaykforkitskgrowthkgoals?
D) Howkmuchkinventorykshouldkthekfirmkkeepkonkhand?
E) Howkmuchkcreditkshouldkthekfirmkextendktokakparticularkcustomer?
4) Whichkonekofkthekfollowingkstatementskiskaccurate?
A) Netkworkingkcapitalkequalskcurrentkassetskpluskcurrentkliabilities.
B) Currentkliabilitieskarekdebtskthatkmustkbekrepaidkink18kmonthskorkless.
C) Currentkassetskarekassetskwithkshortklives,ksuchkaskaccountskreceivable.
D) Long-termkdebtkiskdefinedkaskakresidualkclaimkonkakfirm’skassets.
E) Tangiblekassetskarekfixedkassetsksuchkaskpatents.
5) Amongkthektypicalkresponsibilitieskofkthekcorporatekcontrollerkis:
A) capitalkexpenditureskmanagement.
B) cashkmanagement.
C) taxkreporting.
D) financialkplanning.
E) creditkmanagement.
6) k isktypicallykthekresponsibilitykofkthekcorporatektreasurer.
A) Financialkplanning
B) Costkaccounting
C) Taxkreporting
D) Informationksystems
E) Financialkaccounting
7) Akfirm’s define(s)kitskcapitalkstructure.
Versionk1 3
, A) mixturekofkvariousktypeskofkproductionkequipment
B) investmentkselectionskforkitskexcesskcashkreserves
C) combinationkofkcashkandkcashkequivalents
D) combinationkofkaccountskappearingkonkthekleftksidekofkitskbalanceksheet
E) proportionskofkfinancingkfromkdebtkandkequity
8) Thekfocuskofkshort-termkfinancekiskon:
A) thektimingkofkcashkflows.
B) acquiringkandksellingkfixedkassets.
C) financingklong-termkprojects.
D) capitalkbudgeting.
E) issuingkadditionalkshareskofkcommonkstock.
9) Netkworkingkcapitalkincludes:
A) copyrights.
B) manufacturingkequipment.
C) commonkstock.
D) long-termkdebt.
E) inventory.
10) k iskdefinedkaskplanningkandkmanagingkakfirm’sklong-termkassets.
A) Workingkcapitalkmanagement
B) Cashkmanagement
C) Costkaccountingkmanagement
D) Capitalkbudgeting
E) Capitalkstructurekmanagement
11) Ankamountkthekfirmskowes,kwhichkitkmustkrepaykwithinktwelvekmonths,kiskcalledka(n):
Versionk1 4
, A) currentkliability.
B) long-termkdebt.
C) intangiblekasset.
D) accountskreceivable.
E) currentkasset.
12) Thekbusinesskentitykthatkisktypicallykthekleastkexpensivektokformkiskthe:
A) limitedkliabilitykcompany.
B) jointkstockkcompany.
C) generalkpartnership.
D) limitedkpartnership.
E) solekproprietorship.
13) A iskakbusinesskownedkbykaksinglekindividual.
A) corporation
B) solekproprietorship
C) generalkpartnership
D) limitedkpartnership
E) limitedkliabilitykcompany
14) Regardingkaksolekproprietorship,kwhichkonekofkthekfollowingkstatementskiskaccurate?
A) Itkiskmorekdifficultktokformkthankotherkformskofkbusiness.
B) Itskbusinesskprofitskarektaxedktwicekatkthekfederalklevel.
C) Itskbusinesskprofitskarektaxedkseparatelykfromkthekpersonalkincomekofkthekowner.
D) Thekownerkmaykbekforcedktoksellkhiskorkherkpersonalkassetsktokpaykthekcompany's
debts.
E) Itkhaskankunlimitedklifekspan.
15) Regardingkaksolekproprietorship,kwhichkonekofkthekfollowingkstatementskiskaccurate?
Versionk1 5
, A) Thekabilityktokraisekcapitalkisklimitedkbykthekowner’skpersonalkwealth.
B) Itkpaysktaxeskatkthekcorporatektaxkrate.
C) Ownershipkofkthekfirmkiskeasyktoktransferktokanotherkindividual.
D) Itkmustkpaykincomektaxeskseparatelykfromkthektaxeskpaidkbykthekowner.
E) Theklegalkcostsktokformkitkarekusuallyksubstantial.
16) Thekprimarykadvantagekofkbeingkaklimitedkpartnerkratherkthankakgeneralkpartnerkis:
A) beingkentitledktokaklargerkportionkofkthekpartnership’skincome.
B) havingkresponsibilitykforkday-to-daykmanagementk ofkthekbusiness.
C) earningkprofitskthatkarekfreekfromkincomektaxation.
D) thekabilityktokhavekoverallkcontrolkofkthekpartnership.
E) one’skpersonalkfinancialkliabilitykisklimitedktokthekamountkofkcapitalkinvested.
17) Akgeneralkpartner:
A) hasklessklegalkliabilitykthankaklimitedkpartner.
B) cankendkthekpartnershipkbykwithdrawing.
C) faceskdoublektaxationkofkprofitskwhereaskaklimitedkpartnerkdoesknot.
D) cannotklosekmorekthankthekamountkofkhiskorkherkequitykinvestment.
E) iskthektermkappliedkonlyktokcorporationskthatkinvestkinkpartnerships.
18) Akpartnership:
A) isktaxedkinktheksamekfashionkthatkakcorporationkisktaxed.
B) terminateskuponkthekdeathkofkanyklimitedkpartner.
C) createskforkallkgeneralkpartnerskankunlimitedkliabilitykforkthekpartnership'skdebts.
D) hasktheksamekabilitykaskakcorporationktokraisekcapital.
E) allowskforkeasyktransferkofkownershipkfromkonekgeneralkpartnerktokanother.
19) Onekadvantagekofkakpartnershipkiskthe:
Versionk1 6
, A) personalkliabilitykforkallkofkthekfirm’skdebts.
B) limitedklifekofkthekentity.
C) limitedkliabilitykprotectionkforkallkofkthekpartners.
D) relativelyklowkcostkofkformation.
E) easekofktransferringkfullkownershipktokothers.
20) Onekdisadvantagekofkthekcorporatekformkofkbusinesskownershipkiskthe:
A) limitedkliabilitykprotectionkprovidedkforkallkowners.
B) firm’skabilityktokraisekcash.
C) unlimitedklifekofkthekfirm.
D) difficultieskencounteredkwhenkchangingkownership.
E) doublektaxationkofkbusinesskprofits.
21) Whichkonekofkthekfollowingkstatementskiskcorrect?
A) Bothkpartnershipskandkcorporationskareksubjectktokdoublektaxation.
B) Solekproprietorshipskandkpartnershipskarektaxedkinkaksimilarkfashion.
C) Partnershipskarekthekmostkcomplicatedktypekofkbusinessktokform.
D) Bothkpartnershipskandkcorporationskhaveklimitedkliabilitykforkallkowners.
E) Allktypeskofkbusinesskformationskhaveklimitedklives.
22) Thekarticleskofkincorporation:
A) cankbekusedktokremovekthekfirm’skmanagement.
B) arekamendedkannuallykbykthekfirm’skstockholders.
C) setkforthkthekrightskgrantedktokshareholders.
D) setkforthkthekruleskbykwhichkthekcorporationkregulateskitskexistence.
E) canksetkforthkthekconditionskunderkwhichkthekfirmkcankavoidkdoublektaxation.
23) Corporatekbylaws:
Versionk1 7
, A) establishktheknamekofkthekcorporation.
B) establishkthekrightskgrantedktok itskshareholders.
C) setkforthkthekpurposekofkthekfirm.
D) establishkthekruleskbykwhichkthekcorporationkregulateskitskexistence.
E) setkforthktheknumberkofkmemberskofkthekinitialkboardkofkdirectors.
24) Regardingkcorporations,kwhichkonekofkthekfollowingkstatementskiskaccurate?
A) Afterkakpredeterminedknumberkofkyears,kownershipkcanknoklongerkbektransferred.
B) Thekabilityktokraisekcapitalkisklimitedkbykthekpersonalkwealthkofkthekowners.
C) Primarykshareholderskhavekunlimitedkliabilitykforkcorporatekdebts.
D) Thekentitykcankoutlivekallkofkitskinitialkowners.
E) Whenktheklastkoriginalkownerkdieskorkwithdraws,kthekentitykiskterminated.
25) Ifkakbusinesskiskformedkaskakcorporation,kownershipkofkthek business:
A) mustkbekgrantedkwithkequalkrightskassignedktokeachkandkeverykshareholder.
B) cankbektransferredkankunlimitedknumberkofktimes.
C) cankonlykbektransferredkwithkthekapprovalkofkthekboardkofkdirectors.
D) iskcontrolledkbykthekcorporatekofficers.
E) mustkbekheldkbyknon-managementkowners.
26) Thekownerskofkaklimitedkliabilitykcompanyktypicallykwouldkpreferkto:
A) bektaxedklikekakcorporation.
B) havekliabilitykexposureksimilarktokthatkofkaksolekproprietor.
C) bektaxedkpersonallykonkallkbusinesskincome.
D) havekliabilitykexposureksimilarktokthatkofkakgeneralkpartner.
E) bektaxedklikekakcorporation,kandkhavekliabilityklikekakpartnership.
27) Inkakgeneralkpartnership,kthekgeneralkpartnerskhave
liabilitykforkthekfirm’skdebtskandkhave controlkoverkday-to-
daykoperations.
Versionk1 8
, A) limited;kno
B) unlimited;ktotal
C) limited;ktotal
D) unlimited;kno
E) unlimited;klimited
28) Whichkonekofkthekfollowingkbusinessktypeskiskbestkforkraisingklargekamountskofkcapital?
A) Solekproprietorship
B) Limitedkliabilitykcompany
C) Corporation
D) Generalkpartnership
E) Limitedkpartnership
29) Whichktypekofkbusinesskorganizationkhasktheksamekrightskandkprivilegeskaccordedktokakl
egalkperson?
A) Solekproprietorship
B) Generalkpartnership
C) Limitedkpartnership
D) Corporation
E) Limitedkliabilitykcompany
30) A
iskakbusinesskformedkbyktwokorkmorekindividualskwhokeachkhavekunlimitedkpersonalkliabil
itykforkallkofkthekfirm’skdebts.
A) corporation
B) solekproprietorship
C) generalkpartnership
D) limitedkpartnership
E) limitedkliabilitykcompany
Versionk1 9
, 31) The
describeskthekfractionkofkthekworkkandkcashktokbekcontributedktokakpartnershipkbyke
achkmemberkofkthatkpartnership.
A) indemnitykclause
B) indenturekcontract
C) statementkofkpurpose
D) partnershipkagreement
E) groupkcharter
32) A(n) iskakbusinesskcreatedkaskakdistinctklegalkentity,kseparatekfromkitskowners.
A) corporation
B) solekproprietorship
C) generalkpartnership
D) limitedkpartnership
E) unlimitedkliabilitykcompany
33) Inkaklimitedkpartnership,keachklimitedkpartner’skliabilitykforkthekpartnership’skdebtskis:
A) limitedktokhiskorkherkpersonalknetkworth.
B) limitedktokthekamountkhekorkshekinvestedkintokthekpartnership.
C) limitedktokhiskorkherktotalkearningskreceivedkfromkthekpartnership.
D) unlimited.
E) limitedktokthektotalkamountkinvestedkbykallkpartners.
34) A
provideskeachkownerkwithklimitedkliability,kandkiskoperatedkandktaxedklikekakpartnership.
A) limitedkliabilitykcompany
B) generalkpartnership
C) limitedkproprietorship
D) limitedkpartnership
E) corporation
Versionk1 10
