[TEST BANK]ACCOUNTING INFORMATION
SYSTEMS, 15THEDITION BY ROMNEY,
STEINBART,SUMMERS, WOOD 2 Chapter 1
Overview of Transaction Processing and
Enterprise Resource
Which of the following statements best represents what finance is about? -
ANSWER>>Creation and maintenance of economic wealth
The goal of the firm should be: - ANSWER>>maximization of shareholder wealth.
Which of the following factors enable a public corporation to grow to a greater
extent, and perhaps at a faster rate, than a partnership or a proprietorship? -
ANSWER>>Access to the capital markets
Which of the following reasons is most responsible for corporations being the
most important form of business organization in the United States? -
ANSWER>>Corporations have the ability to raise larger sums of capital than the
other forms of business organization.
Difficulty in finding profitable projects is due to: - ANSWER>>competitive markets.
Which of the following is NOT a principle of basic financial management? -
ANSWER>>Profit is king
Which of the following is NOT an advantage of the sole proprietorship? -
ANSWER>>Limited liability
What is the chief disadvantage of the sole proprietorship as a form of business
organization when compared to the corporate form? - ANSWER>>Owners have
unlimited liability
, Which of the following is NOT true for limited partnerships? - ANSWER>>Limited
partners can only manage the business
The true owners of the corporation are the: - ANSWER>>common stockholders.
In terms of organizational costs, which of the following sequences is generally
correct, moving from lowest to highest cost? - ANSWER>>Sole proprietorship,
general partnership, limited partnership, corporation
Assume that you are starting a business. Further assume that the business is
expected to grow very quickly and a great deal of capital will be needed soon.
What type of business organization would you choose? - ANSWER>>Corporation
Which one of the following categories of owners enjoys limited liability? -
ANSWER>>Shareholders (common stock) of a corporation
Which of the following is a characteristic of a limited partnership? - ANSWER>>All
of the above.
Which of the following categories of owners have limited liability -
ANSWER>>Shareholders of a corporation
Which of the following types of business forms is the most ideal in terms of
attracting new capital? - ANSWER>>A public corporation
Which forms of organization are free of initial legal requirements? -
ANSWER>>Both A and B
For these types of organization, no distinction is made between business and
personal assets. - ANSWER>>Both A and B
SYSTEMS, 15THEDITION BY ROMNEY,
STEINBART,SUMMERS, WOOD 2 Chapter 1
Overview of Transaction Processing and
Enterprise Resource
Which of the following statements best represents what finance is about? -
ANSWER>>Creation and maintenance of economic wealth
The goal of the firm should be: - ANSWER>>maximization of shareholder wealth.
Which of the following factors enable a public corporation to grow to a greater
extent, and perhaps at a faster rate, than a partnership or a proprietorship? -
ANSWER>>Access to the capital markets
Which of the following reasons is most responsible for corporations being the
most important form of business organization in the United States? -
ANSWER>>Corporations have the ability to raise larger sums of capital than the
other forms of business organization.
Difficulty in finding profitable projects is due to: - ANSWER>>competitive markets.
Which of the following is NOT a principle of basic financial management? -
ANSWER>>Profit is king
Which of the following is NOT an advantage of the sole proprietorship? -
ANSWER>>Limited liability
What is the chief disadvantage of the sole proprietorship as a form of business
organization when compared to the corporate form? - ANSWER>>Owners have
unlimited liability
, Which of the following is NOT true for limited partnerships? - ANSWER>>Limited
partners can only manage the business
The true owners of the corporation are the: - ANSWER>>common stockholders.
In terms of organizational costs, which of the following sequences is generally
correct, moving from lowest to highest cost? - ANSWER>>Sole proprietorship,
general partnership, limited partnership, corporation
Assume that you are starting a business. Further assume that the business is
expected to grow very quickly and a great deal of capital will be needed soon.
What type of business organization would you choose? - ANSWER>>Corporation
Which one of the following categories of owners enjoys limited liability? -
ANSWER>>Shareholders (common stock) of a corporation
Which of the following is a characteristic of a limited partnership? - ANSWER>>All
of the above.
Which of the following categories of owners have limited liability -
ANSWER>>Shareholders of a corporation
Which of the following types of business forms is the most ideal in terms of
attracting new capital? - ANSWER>>A public corporation
Which forms of organization are free of initial legal requirements? -
ANSWER>>Both A and B
For these types of organization, no distinction is made between business and
personal assets. - ANSWER>>Both A and B
