Fundamentals of Financial Management, 14E by Eugene F. Brigham/Joel F. Houston-|Test bank| Reviewed/Updated for 2021-CompleteOCRALL Chapters Included

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Fundamentals of Financial Management, 14E by Eugene F. Brigham/Joel F. Houston-|Test bank| Reviewed/Updated for 2021-Complete>>ALL Chapters Included The Test bank borrows from the elaborated text b... ook fielding questions specially tailored to the text book topics to equip the student with what questions to expect in the quiz’s tests and examsIn most corporations, the CFO ranks under the CEO. a. True b. False. The Chairman of the Board must also be the CEO. a. True b. FalseThe board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. a. True b. FalsePartnerships and proprietorships generally have a tax advantage over corporations. a. True b. FalseA disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership. a. True b. FalseOne advantage of the corporate form of organization is that it avoids double taxation. a. True b. FalseIf someone deliberately understates costs and thereby increases profits, this can cause the stock price to rise above its intrinsic value. The stock price will probably fall in the future. Also, those who participated in the fraud can be prosecuted, and the firm itself can be penalized. a. True b. False [Show More]

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