10/8/25, 3:18 PM Wgu D362 Corporate Finance section1 Exam (2025) Exam Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026!!…
Wgu D362 Corporate Finance section1 Exam
(2025) Exam Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026!!
Save
Terms in this set (32)
Last year, a company filed A major disadvantage of a C-corporation is that it
an income tax return and must pay taxes on the income it earns. If the
paid taxes on its net corporation pays a cash dividend, the stockholders
income. From this net must also pay taxes on the dividends they receive.
income, the company paid Thus, the owners of C-corporations are subject to
cash dividends to its double taxation—first at the corporate level and then
shareholders, who were at the personal level when they receive dividends.
required to pay taxes on
the dividends they
received.
Which type of business
organization is this
company?
S-corporation
Partnership
C-corporation
Limited liability company
(LLC)
https://quizlet.com/1089532475/wgu-d362-corporate-finance-section1-exam-2025-exam-questions-answers-latest-already-graded-a-update-2025202… 1/22
,10/8/25, 3:18 PM Wgu D362 Corporate Finance section1 Exam (2025) Exam Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026!!…
"Costlier to establish than a sole proprietorship or a
What are two key partnership" is correct. Starting a corporation is
characteristics of an S- costlier than starting a sole proprietorship. For
corporation? Choose two example, it requires writing articles of incorporation
answers. and by-laws that conform to the laws of the state of
Costlier to establish than a incorporation.
sole proprietorship or a "Limited liability of owners" is correct. A major
partnership advantage of a corporation is that stockholders have
Unlimited number of limited liability for debts and other obligations.
stockholders Owners of corporations have limited liability because
Limited liability of owners corporations are legal persons that take actions in
Double taxation their own names, not in the names of individual
owners.
"Access to capital" is correct. Shares in a corporation
can be sold to raise capital from investors who are
What are two key not involved in the business. This can greatly increase
characteristics of a C- the amount of capital that can be raised to fund the
corporation? Choose two business.
answers. "Double taxation" is correct. A major disadvantage of
Inexpensive formation a C-corporation is that it must pay taxes on the
Access to capital income it earns. If the corporation pays a cash
Unlimited liability of dividend, the stockholders must also pay taxes on the
owners dividends they receive. Thus, the owners of C-
Double taxation corporations are subject to double taxation—first at
the corporate level and then at the personal level
when they receive dividends.
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, 10/8/25, 3:18 PM Wgu D362 Corporate Finance section1 Exam (2025) Exam Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026!!…
A new corporation is Correct:The board of directors is elected by the
being formed, and shareholders and is responsible to them, not to
reporting standards are management.
being considered.
Who reports directly to
the owners in this business
structure?
Board of directors
Chief financial officer
(CFO)
Audit committee
Chief executive officer
(CEO)
Who is responsible for Answer
preparing a company's Correct:In addition to maintaining the firm's financial
financial statements? and cost accounting systems, preparing taxes, and
The internal auditor working closely with the firm's external auditors, the
The controller controller is responsible for preparing the financial
The treasurer statements.
The external auditor
Which type of business Correct:
organization is subject to A major disadvantage of a C-corporation is that it
paying taxes on its must pay taxes on the income it earns. If the
income, while its corporation pays a cash dividend, the stockholders
stockholders are also must also pay taxes on the dividends they receive.
taxed on the dividends? Thus, the owners of C-corporations are subject to
Partnership being taxed twice—first at the corporate level and
Sole proprietorship then at the personal level when they receive
C-corporation dividends.
Limited liability
corporation (LLC)
https://quizlet.com/1089532475/wgu-d362-corporate-finance-section1-exam-2025-exam-questions-answers-latest-already-graded-a-update-2025202… 3/22
Wgu D362 Corporate Finance section1 Exam
(2025) Exam Questions & Answers | Latest
Already Graded A+ UPDATE 2025|2026!!
Save
Terms in this set (32)
Last year, a company filed A major disadvantage of a C-corporation is that it
an income tax return and must pay taxes on the income it earns. If the
paid taxes on its net corporation pays a cash dividend, the stockholders
income. From this net must also pay taxes on the dividends they receive.
income, the company paid Thus, the owners of C-corporations are subject to
cash dividends to its double taxation—first at the corporate level and then
shareholders, who were at the personal level when they receive dividends.
required to pay taxes on
the dividends they
received.
Which type of business
organization is this
company?
S-corporation
Partnership
C-corporation
Limited liability company
(LLC)
https://quizlet.com/1089532475/wgu-d362-corporate-finance-section1-exam-2025-exam-questions-answers-latest-already-graded-a-update-2025202… 1/22
,10/8/25, 3:18 PM Wgu D362 Corporate Finance section1 Exam (2025) Exam Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026!!…
"Costlier to establish than a sole proprietorship or a
What are two key partnership" is correct. Starting a corporation is
characteristics of an S- costlier than starting a sole proprietorship. For
corporation? Choose two example, it requires writing articles of incorporation
answers. and by-laws that conform to the laws of the state of
Costlier to establish than a incorporation.
sole proprietorship or a "Limited liability of owners" is correct. A major
partnership advantage of a corporation is that stockholders have
Unlimited number of limited liability for debts and other obligations.
stockholders Owners of corporations have limited liability because
Limited liability of owners corporations are legal persons that take actions in
Double taxation their own names, not in the names of individual
owners.
"Access to capital" is correct. Shares in a corporation
can be sold to raise capital from investors who are
What are two key not involved in the business. This can greatly increase
characteristics of a C- the amount of capital that can be raised to fund the
corporation? Choose two business.
answers. "Double taxation" is correct. A major disadvantage of
Inexpensive formation a C-corporation is that it must pay taxes on the
Access to capital income it earns. If the corporation pays a cash
Unlimited liability of dividend, the stockholders must also pay taxes on the
owners dividends they receive. Thus, the owners of C-
Double taxation corporations are subject to double taxation—first at
the corporate level and then at the personal level
when they receive dividends.
https://quizlet.com/1089532475/wgu-d362-corporate-finance-section1-exam-2025-exam-questions-answers-latest-already-graded-a-update-2025202… 2/22
, 10/8/25, 3:18 PM Wgu D362 Corporate Finance section1 Exam (2025) Exam Questions & Answers | Latest Already Graded A+ UPDATE 2025|2026!!…
A new corporation is Correct:The board of directors is elected by the
being formed, and shareholders and is responsible to them, not to
reporting standards are management.
being considered.
Who reports directly to
the owners in this business
structure?
Board of directors
Chief financial officer
(CFO)
Audit committee
Chief executive officer
(CEO)
Who is responsible for Answer
preparing a company's Correct:In addition to maintaining the firm's financial
financial statements? and cost accounting systems, preparing taxes, and
The internal auditor working closely with the firm's external auditors, the
The controller controller is responsible for preparing the financial
The treasurer statements.
The external auditor
Which type of business Correct:
organization is subject to A major disadvantage of a C-corporation is that it
paying taxes on its must pay taxes on the income it earns. If the
income, while its corporation pays a cash dividend, the stockholders
stockholders are also must also pay taxes on the dividends they receive.
taxed on the dividends? Thus, the owners of C-corporations are subject to
Partnership being taxed twice—first at the corporate level and
Sole proprietorship then at the personal level when they receive
C-corporation dividends.
Limited liability
corporation (LLC)
https://quizlet.com/1089532475/wgu-d362-corporate-finance-section1-exam-2025-exam-questions-answers-latest-already-graded-a-update-2025202… 3/22
