FIN 300 Final Exam questions and correct 100% answers

One of the most important disadvantages of the corporate form of business is: a. limited owner liability b. ease of transferring ownership c. double taxation d. unlimited owner liability - correct answers c. double taxation Profit maximization: a. is the ultimate goal of a firm b. is a long-run concept c. always maximizes the wealth of the owners d. does not consider future cash flows or risk - correct answers d. does not consider future cash flows or risk Hillary Rotteneggs wishes to form a company that will specialize in toxic waste removal and storage. Which type of business form would be most advantageous? a. a sole proprietorship due to its low cost and ease of formation b. a partnership due to its low cost and diversitifcation of ownership c. a corporation due to its limited liability d. any of the above would be equally acceptable - correct answers c. a corporation due to its limited liability Which of the following is true? a. as the length of time until an exepcted cash flow increases, the stock price decreases