TEST BANK FOR Corporate Finance, 3rd Edition By Jonathan Berk and Peter DeMarzo | All Chapters | Latest & Updated Version A+

TESTBANK FOR Corporate Finance, 3rd
Edition
by Jonathan Berk and Peter DeMarẔo






,Corporate Finance, 3e
(Berk/DeMarẔo) Chapter 1 The
Corporation


1.1 The Four Types of Firms


1) A sole proprietorship is owned by:
A) one person.
B) two of more persons.
C) shareholders.
D) banker
s.
Answer:
A Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Definition


2) Which of the following organiẔation forms for a business does NOT avoid double taxation?
A) Limited partnership
B) "C" corporation
C) "S" corporation
D) Limited liability
company Answer: B
Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Conceptual


3) Which of the following organiẔation forms accounts for the most revenue?
A) "S" corporation
B) Limited partnership


,C) "C" corporation
D) Limited liability
company Answer: C
Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Conceptual


4) Which of the following organiẔation forms accounts for the greatest number of firms?
A) "S" corporation
B) Limited partnership
C) Sole proprietorship
D) "C"
corporation
Answer: C






, Diff: 1
Section: 1.1 The Four Types of Firms
Skill: Conceptual