FIN 304 Exam 1 Questions And Answers
In a partnership form of organization, income tax liability, if any, is incurred by
the partners individually.
Which one of the following would correctly differentiate general partners from
limited partners in a limited partnership?
General partners have unlimited personal liability
Which of the following is a disadvantage to incorporating a business?
Profits taxed at the corporate level and the shareholder level
Unlimited liability is faced by the owners of
sole proprietorships and general partnerships.
"Double taxation" refers to:
paying taxes on profits at the corporate level and dividends at the personal level.
Which one of the following is a financial asset?
corporate bond
Which one of the following statements best distinguishes the difference between
real and financial assets?
In a partnership form of organization, income tax liability, if any, is incurred by
the partners individually.
Which one of the following would correctly differentiate general partners from
limited partners in a limited partnership?
General partners have unlimited personal liability
Which of the following is a disadvantage to incorporating a business?
Profits taxed at the corporate level and the shareholder level
Unlimited liability is faced by the owners of
sole proprietorships and general partnerships.
"Double taxation" refers to:
paying taxes on profits at the corporate level and dividends at the personal level.
Which one of the following is a financial asset?
corporate bond
Which one of the following statements best distinguishes the difference between
real and financial assets?
