CORPORATE FINANCE RICHARD EXAM
REVIEW 2026 BUNDLED PROBLEMS AND
ANSWERS
◉ In a _____________ partnership, all the partners share in gains or
losses, and all have unlimited liability for all partnership debts, not
just some particular share. Answer: General
◉ Inventory is a: Answer: part of working capital.
current asset.
◉ A sole proprietorship is a business owned by ______ person(s).
Answer: One
◉ In a limited partnership, a limited partner's liability for business
debts is ______. Answer: limited to his/her cash contribution to the
partnership
◉ Which of the following are true of a sole proprietorship? Answer:
It is the simplest type of business to form.
A proprietorship has a limited life.
, ◉ A business without separate legal authority formed by two or
more people is known as a _____. Answer: Partnership
◉ The advantages and disadvantages of a partnership are basically
the same as those of a _____. Answer: Proprietorship
◉ A general partnership has which of the following characteristics?
Answer: It is difficult to transfer ownership.
Each owner has unlimited liability for all firm debts.
◉ Which of the following show why a corporation is the most
important form of business? Answer: A corporation is a separate
legal entity with the ability to acquire and exchange property.
Corporations can enter into contracts.
Corporations can sue and be sued.
◉ Which of the following are important when considering a
partnership? Answer: Fund raising limitations
Taxation of partnership income
Personal liability for firm debts
◉ When a corporation is formed, it is granted which of the following
rights? Answer: State citizenship for jurisdictional purposes
Legal powers to sue
REVIEW 2026 BUNDLED PROBLEMS AND
ANSWERS
◉ In a _____________ partnership, all the partners share in gains or
losses, and all have unlimited liability for all partnership debts, not
just some particular share. Answer: General
◉ Inventory is a: Answer: part of working capital.
current asset.
◉ A sole proprietorship is a business owned by ______ person(s).
Answer: One
◉ In a limited partnership, a limited partner's liability for business
debts is ______. Answer: limited to his/her cash contribution to the
partnership
◉ Which of the following are true of a sole proprietorship? Answer:
It is the simplest type of business to form.
A proprietorship has a limited life.
, ◉ A business without separate legal authority formed by two or
more people is known as a _____. Answer: Partnership
◉ The advantages and disadvantages of a partnership are basically
the same as those of a _____. Answer: Proprietorship
◉ A general partnership has which of the following characteristics?
Answer: It is difficult to transfer ownership.
Each owner has unlimited liability for all firm debts.
◉ Which of the following show why a corporation is the most
important form of business? Answer: A corporation is a separate
legal entity with the ability to acquire and exchange property.
Corporations can enter into contracts.
Corporations can sue and be sued.
◉ Which of the following are important when considering a
partnership? Answer: Fund raising limitations
Taxation of partnership income
Personal liability for firm debts
◉ When a corporation is formed, it is granted which of the following
rights? Answer: State citizenship for jurisdictional purposes
Legal powers to sue
