Test Bank for Corporate Finance, 6th Canadian Edition by Jonathan Berk, Peter DeMarzo - Complete Chapters Included (Chap 1 to 31) A+

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Test Bank for Corporate Finance, 6th Canadian Edition by
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vv Jonathan Berk, Peter DeMarzo - Complete Chapters vv vv vv s s vv vv vv




vv Included (Chap 1 to 31) A+ vv vv vv vv vv




Chapter 1 ss The Corporation and Financial Markets
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1.1 The Three Types of Firms
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1) A sole proprietorship is owned by:
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A) one person. s s




B) two or more people.
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C) shareholders.
D) bankers. ss




Answer: A ss ss




Diff: 1 Type: MC
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Topic : 1.1 ss s s The Three Types of Firms
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2) Which of the following organization forms is the most common in the economy?
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A) Limited Liability Partnership s s ss




B) Limited Partnership ss




C) Sole Proprietorship s s




D) PubliclyTraded Corporation s ss ss




Answer: C Diff: 1Type: MC
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Topic : 1.1 ss s s The Three Types of Firms
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3) Which of the following organization forms earns the most revenue?
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A) Privately Owned Corporation ss s s




B) Limited Partnership ss




C) Publicly Owned Corporation ss s s




D) Limited Liability Company ss ss ss




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Answer: C Diff: 1Type: MC
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Topic : 1.1
ss s s The Three Types of Firms
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4) Which of the following is NOT an advantage of a sole proprietorship?
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A) Single taxation ss




B) Ease of setup ss s s




C) Limited liability ss




D) No separation of ownership and control
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Answer:
C s s




Diff: 2 s s Type: MC s s




Topic : 1.1 ss s s The Three Types of Firms s s s s s s s s




5) Which of the following statements regarding limited partnerships is true?
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A) There is no limit on a limited partner's liability.
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B) A limited partner's liability is limited by the amount of his investment.
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C) A limited partner is not liable until all of the assets of the general partners
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ss have been exhausted.
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D) A general partner's liability is limited by the amount of his investment.
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s s Answer: B Diff: 2 ss ss ss Type: MC ss




Topic : 1.1 ss s s The Three Types of Firms s s s s s s s s




6) Which of the following are advantages of incorporation?
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A) Access to capital markets ss ss s s




B) Limited liability ss




C) Unlimited life s s




D) All of the above ss ss ss ss




Answer: D Diff: 2 ss ss ss Type:
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Topic : 1.1 ss s s The Three Types of Firms s s s s s s s s




7) In Canada, a limited liability partnership, LLP, is essentially:
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A) a limited partnership without limited partners.
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B) a limited partnership without a general partner.
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C) just another name for a limited partnership.
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D) just another name for a corporation.
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s s Answer: B s s




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