Test Bank for Financial Management: Theory & Practice, 17th Edition – Brigham & Ehrhardt (Complete Chapters 1-26)

TEST BANK for Financial Management: Theory & Practice
m m m m m m m

m




mm 17th Edition Eugene F. Brigham & Michael C. Ehrhardt
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,1. Themformmofmorganizationmformambusinessmismnotmanmimportantmissue,masmthismdecisionmhasmverymlittle
meffectmonmthem incomemandmwealthmofmthemfirm'smowners.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY:
Difficulty:mEas
ym QUESTIONmTYPE:
Truem/mFalsem
HASmVARIABLES: False
LEARNINGmOBJECTmFMTP.EHRH.17.01.03m-mLO:m1-3
IVES:
NATIONALmSTANDAmUnitedmStatesm-mBUSPROG:mReflectivemThinking
RDS:
STATEmSTANDARDSmUnitedmStatesm-mAKm-mDISC:mGoalsmofmthemfirm,mrolemofm-
mDISC:mGoalsmofmthemfirm,mrolemofmfinance,mand
: analysismofmpublicminformation
LOCALmSTANDARDSmUnitedmStatesm-mOHm-mDefaultmCitym-mTBA
:
TOPICS: Firmmorganization
KEYWORDS: Bloom’s:
KnowledgemDATEmCREATED:m 8/26/2015m
10:43mAMmDATEmMODIFIED:mmm 8/26/201
5
10:43mAM
QUESTIONmID: JFND-GO4G-EO5U-ECKG
QUESTIONmm Gm GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBALmID: GO3D-EA3O-CJDI-GWN8-EPRW-EMJW-CRHU-C3B3-CO4S-RCBA-CWSU-N3JI-CRSU-N3B3-mGOSU-
m NA5D-CCSU-OATA-GBTG-ECDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE


2. Themmajormadvantagemofmamregularmpartnershipmormamcorporationmasmamformmofmbusinessmorganization
mismthemfactm thatmbothmoffermtheirmownersmlimitedmliability,mwhereasmproprietorshipsmdomnot.

a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY:
Difficulty:mEas
ym QUESTIONmTYPE:
Truem/mFalsem
HASmVARIABLES: False
LEARNINGmOBJECTmFMTP.EHRH.17.01.03m-mLO:m1-3
IVES:
NATIONALmSTANDAmUnitedmStatesm-mBUSPROG:mReflectivemThinking
RDS:
STATEmSTANDARDSmUnitedmStatesm-mAKm-mDISC:mGoalsmofmthemfirm,mrolemofm-
mDISC:mGoalsmofmthemfirm,mrolemofmfinance,mand
: analysismofmpublicminformation

,LOCALmSTANDARDSUnitedmStatesm-mOHm-mDefaultmCitym-mTBA
:
TOPICS: Firmmorganization
KEYWORDS: Bloom’s:

, DATEmMODIFIED:mmm 8/26/2015m10:43mAM
QUESTIONmID: JFND-GO4G-EO5U-ECKF
QUESTIONmm Gm GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBALmID: GO3D-EA3O-CJDI-GWN8-EPRW-EMMG-GOHG-EPMF-GJOU-GA3T-GASS-EP3U-8RSS-RPTT-mGOSU-
m GATT-GRSS-RC3O-CR3U-KPMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE


3. Theremaremthreemprimarymdisadvantagesmofmamregularmpartnership:m(1)munlimitedmliability,m(2)mlimitedml
ifemofmthem organization,mandm(3)mdifficultymofmtransferringmownership.mThesemcombinemtommakemitmdifficul
tmformpartnershipsmtom attractmlargemamountsmofmcapitalmandmthusmtomgrowmtomamverymlargemsize.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY:
Difficulty:mEas
ym QUESTIONmTYPE:
Truem/mFalsem
HASmVARIABLES: False
LEARNINGmOBJECTmFMTP.EHRH.17.01.03m-mLO:m1-3
IVES:
NATIONALmSTANDAmUnitedmStatesm-mBUSPROG:mReflectivemThinking
RDS:
STATEmSTANDARDSmUnitedmStatesm-mAKm-mDISC:mGoalsmofmthemfirm,mrolemofm-
mDISC:mGoalsmofmthemfirm,mrolemofmfinance,mand
: analysismofmpublicminformation
LOCALmSTANDARDSUnitedmStatesm-mOHm-mDefaultmCitym-mTBA
:
TOPICS: Partnership
KEYWORDS: Bloom’s:
KnowledgemDATEmCREATED:m 8/26/2015m
10:43mAMmDATEmMODIFIED:mmm 8/26/201
5
10:43mAM
QUESTIONmID: JFND-GO4G-EO5U-ECKR
QUESTIONmm Gm GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-
LOBALmID: GO3D-EA3O-CJDI-GWN8-EPRW-EMJI-GFOS-K3TI-GYAG-EPUG-COSS-KPJS-CESU-CPT3-GOSS-mR3UR-
m CESU-YPMB-GC4S-GQJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE


4. Twomdisadvantagesmofmamproprietorshipmarem(1)mthemrelativemdifficultymofmraisingmnewmcapitalmandm(2)m
themowner'sm unlimitedmpersonalmliabilitymformthembusiness'mdebts.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY:
Difficulty:mEas
ym QUESTIONmTYPE:
Truem/mFalsem