Healthcare Finance questions and correct answer

Healthcare Finance questions and
correct answers

Which of the following statements about the legal forms of for-profit
business organization is most correct?
a. Corporations are easier to form than proprietorships.
a. Corporations are easier to form than proprietorships.
c. Corporations have the advantage of limited liability to owners.
d. Hybrid forms of business cannot be used by healthcare
organizations.
e. Corporations' income is taxed only once, and hence they typically
are more tax efficient than proprietorships and partnerships - Ans✔✔c.
Corporations have the advantage of limited liability to owners.


Which of the following statements about investor-owned (for-profit)
corporations is incorrect?
a. Investors become owners by purchasing shares of stock.
b. Owners have a claim on the business's residual earnings.
c. Owners exercise control by voting for the board of directors (the
proxy mechanism).
d. When an individual sells his stock, the company receives the
proceeds from the sale.
e. An investor (owner) cannot lose more than the amount of his
investment. - Ans✔✔d. When an individual sells his stock, the company
receives the proceeds from the sale.