TEST BANK
b
Corporate Finance, Canadian Edition, 6th Edition
b b b b b
by Jonathan Berk, Peter DeMarzo, All Chapters 1 - 31
b b b b b b b b b b
,TABLE OF CONTENTS b b
1. The Corporation and Financial Markets
b b b b
2. Introduction to Financial Statement Analysis b b b b
3. Financial Decision Making and the Law of One Price
b b b b b b b b
4. The Time Value of Money
b b b b
5. Interest Rates b
6. Valuing Bonds b
7. Investment Decision Rules b b
8. Fundamentals of Capital Budgeting b b b
9. Valuing Stocks b
10. Capital Markets and the Pricing of Risk
b b b b b b
11. Optimal Portfolio Choice and the Capital Asset Pricing Model
b b b b b b b b
12. Estimating the Cost of Capital b b b b
13. Investor Behavior and Capital Market Efficiency
b b b b b
14. Capital Structure in a Perfect Market
b b b b b
15. Debt and Taxes
b b
16. Financial Distress, Managerial Incentives, and Information
b b b b b
17. Payout Policy b
18. Capital Budgeting and Valuation with Leverage
b b b b b
19. Valuation and Financial Modeling: A Case Study
b b b b b b
20. Financial Options b
21. Option Valuation
b
22. Real Options
b
23. Raising Equity Capital b b
24. Debt Financing
b
25. Leasing
26. Working Capital Management b b
27. Short-Term Financial Planning b b
28. Mergers and Acquisitions b b
29. Corporate Governance b
30. Risk Management
b
,31. International Corporate Finance
b b
, 1. The Corporation and Financial Markets b b b b
1.1 The Three Types of Firms b b b b
1) A sole proprietorship is owned by:
b b b b b
A) one person b
B) two or more people
b b b
C) shareholders
D) banker
s b
ANSWER A b
Diff: 1 Type: MC
b b
Topic: 1.1 The Three Types of Firms
b b b b b b
2) In Canada, which of the following organization forms accounts for the greatest
b b b b b b b b b b b
number offirms?
b b b
A) Limited Liability Partnership b b
B) Limited Partnership b
C) Sole Proprietorship b
D) Publicly Traded b
CorporationANSWER: C
b b b
Diff: 1 Type: MC
b b
Topic: 1.1 The Three Types of Firms
b b b b b b
3) Which of the following organization forms earns the most revenue?
b b b b b b b b b
A) Privately Owned Corporation b b
B) Limited Partnership b
C) Publicly Owned Corporation b b
D) Limited Liability b
CompanyANSWER: C
b b b
Diff: 1 Type: MC
b b
Topic: 1.1 The Three Types of Firms
b b b b b b
4) Which of the following is NOT an advantage of a sole proprietorship?
b b b b b b b b b b b
A) Single taxation b
B) Ease of setup b b
C) Limited liability b
D) No separation of ownership and
b b b b
controlANSWER: C
b b b
Diff: 2 Type: MC
b b
b
Corporate Finance, Canadian Edition, 6th Edition
b b b b b
by Jonathan Berk, Peter DeMarzo, All Chapters 1 - 31
b b b b b b b b b b
,TABLE OF CONTENTS b b
1. The Corporation and Financial Markets
b b b b
2. Introduction to Financial Statement Analysis b b b b
3. Financial Decision Making and the Law of One Price
b b b b b b b b
4. The Time Value of Money
b b b b
5. Interest Rates b
6. Valuing Bonds b
7. Investment Decision Rules b b
8. Fundamentals of Capital Budgeting b b b
9. Valuing Stocks b
10. Capital Markets and the Pricing of Risk
b b b b b b
11. Optimal Portfolio Choice and the Capital Asset Pricing Model
b b b b b b b b
12. Estimating the Cost of Capital b b b b
13. Investor Behavior and Capital Market Efficiency
b b b b b
14. Capital Structure in a Perfect Market
b b b b b
15. Debt and Taxes
b b
16. Financial Distress, Managerial Incentives, and Information
b b b b b
17. Payout Policy b
18. Capital Budgeting and Valuation with Leverage
b b b b b
19. Valuation and Financial Modeling: A Case Study
b b b b b b
20. Financial Options b
21. Option Valuation
b
22. Real Options
b
23. Raising Equity Capital b b
24. Debt Financing
b
25. Leasing
26. Working Capital Management b b
27. Short-Term Financial Planning b b
28. Mergers and Acquisitions b b
29. Corporate Governance b
30. Risk Management
b
,31. International Corporate Finance
b b
, 1. The Corporation and Financial Markets b b b b
1.1 The Three Types of Firms b b b b
1) A sole proprietorship is owned by:
b b b b b
A) one person b
B) two or more people
b b b
C) shareholders
D) banker
s b
ANSWER A b
Diff: 1 Type: MC
b b
Topic: 1.1 The Three Types of Firms
b b b b b b
2) In Canada, which of the following organization forms accounts for the greatest
b b b b b b b b b b b
number offirms?
b b b
A) Limited Liability Partnership b b
B) Limited Partnership b
C) Sole Proprietorship b
D) Publicly Traded b
CorporationANSWER: C
b b b
Diff: 1 Type: MC
b b
Topic: 1.1 The Three Types of Firms
b b b b b b
3) Which of the following organization forms earns the most revenue?
b b b b b b b b b
A) Privately Owned Corporation b b
B) Limited Partnership b
C) Publicly Owned Corporation b b
D) Limited Liability b
CompanyANSWER: C
b b b
Diff: 1 Type: MC
b b
Topic: 1.1 The Three Types of Firms
b b b b b b
4) Which of the following is NOT an advantage of a sole proprietorship?
b b b b b b b b b b b
A) Single taxation b
B) Ease of setup b b
C) Limited liability b
D) No separation of ownership and
b b b b
controlANSWER: C
b b b
Diff: 2 Type: MC
b b
