Preview

finanical management

Satisfactory Essays
Open Document
Open Document
2338 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
finanical management
True/False 1.The financial manager should examine available risk-return trade-offs and make his decision based upon the greatest expected return.

False

2.Only a few financial decisions involve some sort of risk-return tradeoff.

False

3.The sole proprietorship can be described as the absence of any legal business structure.

True

4.In a general partnership, all partners have unlimited liability for the actions of any one partner when that partner is conducting business for the firm.

True

5.There is no legal distinction made between the assets of the business and the personal assets of the owners in the limited partnership.

False

6.General partners have unrestricted transferability of ownership, while limited partners must have the consent of all partners to transfer their ownership.

False

7.Ultimate control in a corporation is vested in the board of directors.

False

8.There are a significant number of legal requirements to follow when establishing a sole proprietorship.

False

9.Limited partners may actively manage the business.

False

10.The life of a corporation is not dependent upon the status of the investors.

True

11.A sole proprietorship is the most desirable business form in all circumstances.

False

12.In a sole proprietorship, the owner is personally responsible without limitation for the liabilities incurred.

True

13.In a limited partnership, at least one general partner must remain in the association; the privilege of limited liability still applies to this partner.

False

14.In a general partnership, there is a distinction between business and personal assets.

False

15.In order to maximize shareholder wealth, a firm must consider historical costs as an integral part of their decision-making.

16.Financial management is concerned with the maintenance and creation of wealth. True

True

17.Shareholder wealth is measured by the market value of the firm's

You May Also Find These Documents Helpful

  • Satisfactory Essays

    GENERAL PARTNERSHIP: Two or more components/people come together to share a business. Each partner shares responsibility for P&L.…

    • 1025 Words
    • 4 Pages
    Satisfactory Essays
  • Good Essays

    2. Limited Partnership (LP): There are still General Partners, but any Partner who is NOT actively involved with making decisions or running the Partnership is a LIMITED Partner and these Limited Partners have Limited Liability. The Limited Partners can only be sued up to the extent of their investment in the Partnership and can lose nothing else.…

    • 3783 Words
    • 16 Pages
    Good Essays
  • Better Essays

    Law 421 Week 4 Assignment

    • 1340 Words
    • 6 Pages

    | A general partnership is a business entity that is made up of two or more entities to carry on a trade or business.…

    • 1340 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Lit1 Task 310.1.2-01-06

    • 1471 Words
    • 6 Pages

    LIABILITY – Partners are personally liable for all of the business debts and obligations. This also includes court judgments.…

    • 1471 Words
    • 6 Pages
    Satisfactory Essays
  • Powerful Essays

    Acct504 Study Questions

    • 12050 Words
    • 49 Pages

    6. The sole proprietorship form of business organization A. must have at least two owners in most states. B. generally receives favorable tax treatment relative to a corporation. C. combines the records of the…

    • 12050 Words
    • 49 Pages
    Powerful Essays
  • Good Essays

    Lit - Task310.2.1-05

    • 1425 Words
    • 6 Pages

    A general partnership is the most basic partnership which is created by an ownership agreement between two or more people in an unincorporated business.…

    • 1425 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Lit 1 Task 1a

    • 1231 Words
    • 5 Pages

    • LIABILITY – Each partner assumes unlimited liability for the debts of the business and can be held totally responsible for debts and malpractice committed by any of the partners.…

    • 1231 Words
    • 5 Pages
    Satisfactory Essays
  • Good Essays

    LIT1 Task 1

    • 1514 Words
    • 5 Pages

    Liability – There is unlimited liability in a general partnership. The owners/partners are responsible for all profits and losses. If one partner is unable to pay a debt the other partners will be accountable to pay.…

    • 1514 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Lit1 Task 1

    • 1519 Words
    • 5 Pages

    GENERAL PARTNERSHIP: An agreement formed by two or more persons. They are simple and inexpensive to create and operate, but the owners are all personally liable for any debts or legal actions…

    • 1519 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    LIT1 Task 1 - A

    • 1253 Words
    • 6 Pages

    GENERAL PARTNERSHIP: This kind of partnership is where two or more people are equal owners and are equally active, liable and authoritative.…

    • 1253 Words
    • 6 Pages
    Satisfactory Essays
  • Good Essays

    HCS 567 Week 3

    • 721 Words
    • 3 Pages

    For business with two or more owners the decision may be to utilize a general or a limited partnership. The general partnership is not dependent on one person for its successes in fact all the partners have a say in how the business runs and functions as per the partnership agreement (Barringer & Ireland, 2010). This type of organization is similar to the sole proprietorship in that the income is noted on the partners’ personal tax returns as the venture files and an informational tax return only (Barringer & Ireland, 2010). The venture also has limited liquidity. Limited partnership is a modified general partnership with the modification being the addition of two different class of partners, general and limited. This venture is used when attempting to…

    • 721 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    lit1 task 3

    • 739 Words
    • 3 Pages

    LIABILITY- The general partners are both responsible for the debts created by general partnership. This can be a negative as one partner can do something to harm the business, but both would end up being responsible.…

    • 739 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    A. unlimited life. B. ease of liquidation. C. profits subject only to a single tax. D. ease of formation.…

    • 1112 Words
    • 5 Pages
    Satisfactory Essays
  • Better Essays

    Finance Pp

    • 6079 Words
    • 25 Pages

    Which of the following statements is most correct? a) b) c) d) e) Corporations generally face fewer regulations than sole proprietorships do. Corporate shareholders have unlimited liability. It is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole…

    • 6079 Words
    • 25 Pages
    Better Essays
  • Good Essays

    Heehee

    • 1931 Words
    • 8 Pages

    I. TRUE OR FALSE. Write TRUE if the fact given in the item is precise, otherwise write FALSE. (2 pts each)…

    • 1931 Words
    • 8 Pages
    Good Essays