Solutions and Test Bank For Intermediate Financial Management14thEdition By EugeneF.Brigham,Daves

Solutions and Test Bank For Intermediate Financial
Management14thEdition By EugeneF.Brigham,Daves

,Chapter01:AnOverviewofFinancialManagementandtheFinancialEnvironment
1. Theformoforganizationforabusinessisnotanimportantissue,asthisdecisionhasverylittleeffectontheincome and wealth
of the firm's owners.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty:Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNINGOBJECTIFMG.DAVE.19.01.03-LO:1-3
IVES:
NATIONALSTANDAUnitedStates-BUSPROG:ReflectiveThinking
RDS:
STATESTANDARDSUnitedStates-AK-DISC:Goalsofthefirm,roleof-DISC:Goalsofthefirm,roleoffinance,and
: analysisofpublicinformation
LOCALSTANDARDSUnitedStates-OH-DefaultCity-TBA
:
TOPICS: Firm organization
KEYWORDS: Bloom’s:Knowledge
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED:1/6/2018 12:00 PM

2. Themajoradvantageofaregularpartnershiporacorporationasaformofbusinessorganizationisthefactthatboth offer their
owners limited liability, whereas proprietorships do not.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty:Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNINGOBJECTIFMG.DAVE.19.01.03-LO:1-3
IVES:
NATIONALSTANDAUnitedStates-BUSPROG:ReflectiveThinking
RDS:
STATESTANDARDSUnitedStates-AK-DISC:Goalsofthefirm,roleof-DISC:Goalsofthefirm,roleoffinance,and
: analysisofpublicinformation
LOCALSTANDARDSUnitedStates-OH-DefaultCity-TBA
:
TOPICS: Firm organization
KEYWORDS: Bloom’s:Knowledge
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED:1/6/2018 12:00 PM

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,Chapter01:AnOverviewofFinancialManagementandtheFinancialEnvironment
3. There are three primary disadvantages of a regular partnership: (1) unlimited liability, (2) limited life of the
organization,and(3)difficultyoftransferringownership.Thesecombinetomakeitdifficultforpartnershipstoattract large
amounts of capital and thus to grow to a very large size.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty:Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNINGOBJECTIFMG.DAVE.19.01.03-LO:1-3
IVES:
NATIONALSTANDAUnitedStates-BUSPROG:ReflectiveThinking
RDS:
STATESTANDARDSUnitedStates-AK-DISC:Goalsofthefirm,roleof-DISC:Goalsofthefirm,roleoffinance,and
: analysisofpublicinformation
LOCALSTANDARDSUnitedStates-OH-DefaultCity-TBA
:
TOPICS: Partnership
KEYWORDS: Bloom’s:Knowledge
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED:1/6/2018 12:00 PM




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, Chapter01:AnOverviewofFinancialManagementandtheFinancialEnvironment
4. Twodisadvantagesofaproprietorshipare(1)therelativedifficultyofraisingnewcapitaland(2)theowner'sunlimited personal
liability for the business' debts.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty:Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNINGOBJECTIFMG.DAVE.19.01.03-LO:1-3
IVES:
NATIONALSTANDAUnitedStates-BUSPROG:ReflectiveThinking
RDS:
STATESTANDARDSUnitedStates-AK-DISC:Goalsofthefirm,roleof-DISC:Goalsofthefirm,roleoffinance,and
: analysisofpublicinformation
LOCALSTANDARDSUnitedStates-OH-DefaultCity-TBA
:
TOPICS: Proprietorship
KEYWORDS: Bloom’s:Knowledge
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED:1/6/2018 12:00 PM

5. Onekeyvalueoflimitedliabilityisthatitlowersowners'risksandtherebyenhancesafirm's value.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty:Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNINGOBJECTIFMG.DAVE.19.01.03-LO:1-3
IVES:
NATIONALSTANDAUnitedStates-BUSPROG:ReflectiveThinking
RDS:
STATESTANDARDSUnitedStates-AK-DISC:Goalsofthefirm,roleof-DISC:Goalsofthefirm,roleoffinance,and
: analysisofpublicinformation
LOCALSTANDARDSUnitedStates-OH-DefaultCity-TBA
:
TOPICS: Limited liability
KEYWORDS: Bloom’s:Knowledge
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED:1/6/2018 12:00 PM


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