FIN300 - Mastery Exam Questions & Answers/Rationales 2022/2023.

FIN300: Principles of Finance for the Private Sector Module 1: Financial Management in the Corporate Environment - Mastery Exercise 1. Strengths of the _____ form of business ownership include the owner receiving all profits, low organizational costs and ease of dissolution, and having income included on the owner's personal tax return. a. holding company b. partnership c. sole proprietorship d. corporation 2. In general, most corporate capital gains are taxed at ___________ tax rate. a. a 46 percent b. the ordinary c. a 28 percent d. a 30 percent 3. Which of the following legal forms of organization is characterized by limited liability? a. sole proprietorship b. partnership c. professional partnership d. corporation 4. Which of the following legal forms of organization is most expensive to organize? a. Sole proprietorships b. Corporations c. Partnerships d. Limited partnership 5. The major securities traded in the capital markets are a. commercial paper and Treasury bills b. Treasury bills and certificates of deposit c. stocks and bonds d. bonds and commercial paper 6. The financial manager is