Created By: A Solution
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Test kBank kfor kCorporate kFinance, k6th kCanadian kEdition kby
Jonathan kBerk, kPeter kDeMarzo k- kComplete kChapters
k
Included k(Chap k1 kto k31) kA+
k
Chapter k1 The kCorporation kand kFinancial kMarkets
1.1 The kThree kTypes kof kFirms
1) A ksole kproprietorship kis kowned kby:
A) one kperson.
B) two kor kmore kpeople.
C) shareholders.
D) bankers. kAnswer:
kA kDiff: k1 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
2) Which kof kthe kfollowing korganization kforms kis kthe kmost kcommon kin kthe keconomy?
A) Limited kLiability kPartnership
B) Limited kPartnership
C) Sole kProprietorship
D) Publicly kTraded kCorporation kAnswer:
kC kDiff: k1 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
3) Which kof kthe kfollowing korganization kforms kearns kthe kmost krevenue?
A) Privately kOwned kCorporation
B) Limited kPartnership
C) Publicly kOwned kCorporation
D) Limited kLiability kCompany kAnswer:
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kC kDiff: k1 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
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4) Which kof kthe kfollowing kis kNOT kan kadvantage kof ka ksole kproprietorship?
A) Single ktaxation
B) Ease kof ksetup
C) Limited kliability
D) No kseparation kof kownership kand kcontrol
kAnswer: kC kDiff: k2 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
5) Which kof kthe kfollowing kstatements kregarding klimited kpartnerships kis ktrue?
A) There kis kno klimit kon ka klimited kpartner's kliability.
B) A klimited kpartner's kliability kis klimited kby kthe kamount kof khis kinvestment.
C) A klimited kpartner kis knot kliable kuntil kall kof kthe kassets kof kthe kgeneral kpartners
khave kbeen kexhausted.
D) A kgeneral kpartner's kliability kis klimited kby kthe kamount kof khis kinvestment.
kAnswer: kB kDiff: k2 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
6) Which kof kthe kfollowing kare kadvantages kof kincorporation?
A) Access kto kcapital kmarkets
B) Limited kliability
C) Unlimited klife
D) All kof kthe kabove kAnswer:
kD kDiff: k2 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
7) In kCanada, ka klimited kliability kpartnership, kLLP, kis kessentially:
A) a klimited kpartnership kwithout klimited kpartners.
B) a klimited kpartnership kwithout ka kgeneral kpartner.
C) just kanother kname kfor ka klimited kpartnership.
D) just kanother kname kfor ka kcorporation. kAnswer: kB
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A+ Page 1
,Created By: A Solution
Test kBank kfor kCorporate kFinance, k6th kCanadian kEdition kby
Jonathan kBerk, kPeter kDeMarzo k- kComplete kChapters
k
Included k(Chap k1 kto k31) kA+
k
Chapter k1 The kCorporation kand kFinancial kMarkets
1.1 The kThree kTypes kof kFirms
1) A ksole kproprietorship kis kowned kby:
A) one kperson.
B) two kor kmore kpeople.
C) shareholders.
D) bankers. kAnswer:
kA kDiff: k1 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
2) Which kof kthe kfollowing korganization kforms kis kthe kmost kcommon kin kthe keconomy?
A) Limited kLiability kPartnership
B) Limited kPartnership
C) Sole kProprietorship
D) Publicly kTraded kCorporation kAnswer:
kC kDiff: k1 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
3) Which kof kthe kfollowing korganization kforms kearns kthe kmost krevenue?
A) Privately kOwned kCorporation
B) Limited kPartnership
C) Publicly kOwned kCorporation
D) Limited kLiability kCompany kAnswer:
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kC kDiff: k1 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
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4) Which kof kthe kfollowing kis kNOT kan kadvantage kof ka ksole kproprietorship?
A) Single ktaxation
B) Ease kof ksetup
C) Limited kliability
D) No kseparation kof kownership kand kcontrol
kAnswer: kC kDiff: k2 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
5) Which kof kthe kfollowing kstatements kregarding klimited kpartnerships kis ktrue?
A) There kis kno klimit kon ka klimited kpartner's kliability.
B) A klimited kpartner's kliability kis klimited kby kthe kamount kof khis kinvestment.
C) A klimited kpartner kis knot kliable kuntil kall kof kthe kassets kof kthe kgeneral kpartners
khave kbeen kexhausted.
D) A kgeneral kpartner's kliability kis klimited kby kthe kamount kof khis kinvestment.
kAnswer: kB kDiff: k2 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
6) Which kof kthe kfollowing kare kadvantages kof kincorporation?
A) Access kto kcapital kmarkets
B) Limited kliability
C) Unlimited klife
D) All kof kthe kabove kAnswer:
kD kDiff: k2 k Type: kMC
Topic k: k1.1 k k The kThree kTypes kof kFirms
7) In kCanada, ka klimited kliability kpartnership, kLLP, kis kessentially:
A) a klimited kpartnership kwithout klimited kpartners.
B) a klimited kpartnership kwithout ka kgeneral kpartner.
C) just kanother kname kfor ka klimited kpartnership.
D) just kanother kname kfor ka kcorporation. kAnswer: kB
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