FIN 320 SOPHIA PRINCIPLES OF FINANCE MILESTONE 1 QUESTIONS WITH VERIFIED ANSWERS,100%CORRECT

FIN 320 SOPHIA PRINCIPLES OF FINANCE MILESTONE 1 QUESTIONS WITH VERIFIED ANSWERS You passed this Milestone 26 questions were answered correctly. 1 question was answered incorrectly. 1 Which method of depreciation calculation gives a company an equal tax benefit from one year to the next? • Declining balance • Salvage • Straight line • Activity-based CONCEPT Tax Considerations 2 If Company A has a lower TIE ratio than Company B, then Company A has than Company B. • less likelihood of using cash on hand to meet its interest obligations • poorer interest coverage • a higher EBIT • less long-term debt CONCEPT Debt Management Ratios 3 Tom and Wendy are launching a life coaching business. They plan to have an equal say in any managerial business decisions and they plan to share any profits or losses. They are concerned about their exposure to liability, so they have purchased some professional insurance policies. However, they are pleased with how simple it has been to organize their business. Which form of business structure have Tom and Wendy likely adopted? • Sole proprietorship • Partnership • S corporation • Corporation CONCEPT Types of Business Organizations 4 For which company can trend analysis be most useful?