BCOR 2204 Quiz 1
Study online at https://quizlet.com/_fw7ku3
1. uptown markets is financed with 45% debt and 55% capital structure
equity. this mixture of debt and equity is referred to as
the firm's:
2. theo's bbq has $48,000 in current assets and $39,000 in working capital manage-
current liabilities. decisions related to these accounts ment
are referred to as:
3. Margie opened a used bookstore and is both the 100 sole proprietorship
percent owner and the store's manager. Which type of
business entity does Margie own if she is personally
liable for all the store's debts?
4. Will and Bill both enjoy sunshine, water, and surf- general partnership
boards. Thus, the two friends decided to create a busi-
ness together renting surfboards, paddle boats, and
inflatable devices in California. Will and Bill will equally
share in the decision making and in the business prof-
its or losses. Which type of business did they create
if they both have full personal liability for the firm's
debts?
5. Matt and Alicia created a firm that is a separate legal corporation
entity and will share ownership of that firm on a 75/25
basis. Which type of entity did they create if they have
no personal liability for the firm's debts?
6. the potential conflict of interest between a firm's own- agency
ers and its managers is referred to as which type of
conflict?
7. capital budgeting includes the evaluation of which of size, timing, and risk of fu-
the following? ture cash flows
1/9
, BCOR 2204 Quiz 1
Study online at https://quizlet.com/_fw7ku3
8. which of the following is a working capital decision? how much cash should the
firm keep in reserve?
9. which one of the following is a capital structure deci- establishing the preferred
sion? debt-equity level
10. the daily financial operations of a firm are primarily working capital
controlled by managing the:
11. a sole proprietorship: has its profits taxed as per-
sonal income
12. which one of the following forms of business organi- limited partnership
zation offers liability protection to some of its owners
but not to all of its owners?
13. in a general partnership, each partner is personally the total debts of the part-
liable for: nership, even if he or
she was unaware of those
debts
14. which is an advantage of being a limited partner? losses limited to capital in-
vested
15. a corporation: is a legal entity separate
from its owners
16. one advantage of the corporate form of organization ability to raise larger sums
is the: of equity capital than other
organizational forms
17. limited liability companies are primarily designed to:
2/9
Study online at https://quizlet.com/_fw7ku3
1. uptown markets is financed with 45% debt and 55% capital structure
equity. this mixture of debt and equity is referred to as
the firm's:
2. theo's bbq has $48,000 in current assets and $39,000 in working capital manage-
current liabilities. decisions related to these accounts ment
are referred to as:
3. Margie opened a used bookstore and is both the 100 sole proprietorship
percent owner and the store's manager. Which type of
business entity does Margie own if she is personally
liable for all the store's debts?
4. Will and Bill both enjoy sunshine, water, and surf- general partnership
boards. Thus, the two friends decided to create a busi-
ness together renting surfboards, paddle boats, and
inflatable devices in California. Will and Bill will equally
share in the decision making and in the business prof-
its or losses. Which type of business did they create
if they both have full personal liability for the firm's
debts?
5. Matt and Alicia created a firm that is a separate legal corporation
entity and will share ownership of that firm on a 75/25
basis. Which type of entity did they create if they have
no personal liability for the firm's debts?
6. the potential conflict of interest between a firm's own- agency
ers and its managers is referred to as which type of
conflict?
7. capital budgeting includes the evaluation of which of size, timing, and risk of fu-
the following? ture cash flows
1/9
, BCOR 2204 Quiz 1
Study online at https://quizlet.com/_fw7ku3
8. which of the following is a working capital decision? how much cash should the
firm keep in reserve?
9. which one of the following is a capital structure deci- establishing the preferred
sion? debt-equity level
10. the daily financial operations of a firm are primarily working capital
controlled by managing the:
11. a sole proprietorship: has its profits taxed as per-
sonal income
12. which one of the following forms of business organi- limited partnership
zation offers liability protection to some of its owners
but not to all of its owners?
13. in a general partnership, each partner is personally the total debts of the part-
liable for: nership, even if he or
she was unaware of those
debts
14. which is an advantage of being a limited partner? losses limited to capital in-
vested
15. a corporation: is a legal entity separate
from its owners
16. one advantage of the corporate form of organization ability to raise larger sums
is the: of equity capital than other
organizational forms
17. limited liability companies are primarily designed to:
2/9
