Finance_301___Corporate_Finance___Chapter_Exams| Download for quality grades | 100% correct |

Document Content and Description Below

~ Correct Score Comparison Time Comparison Page 1 of 10 > Whfch financia l management activity Involves determining the external resources that come Into the company? You scored higher than 100'6... of other users. You You finished 5 minutes faster than other users. 00:07:44 00:12:41 Your time Other users Correct Tyler is the sole owner and stockholder of tho corporation, Tyler's Tires. Two years ago, Tylor's Tires hired Anna as the CEO. If Tyler dies, what happens to Tyler's Tires? Management of the company goes to the noxt of kin. The company will need to seek new management in order to continue operation. Nothing, It conllnues to run under ltie direction of the CEO. The company Is Immediately liquidated. None of the answers are correct Explanation Corporations have perpetual existence so the company will continue. Tyler's stock will go to his heirs but not the management of the company. Watch Correct Answer Correct What is the primary reason a business would decide to become a corporation over any other form of organization? Owners who wish to retain complete control over all operations would choose to be a corporation. Forming a corporation would limit tax liability for owners and leave more capital for operations. A corporation i$ a simple form of business for the owners to operate. It is ideal-for those who wanta bosiness that is considered a separate entity from its owners. 100 Correct John and Mark have opened a law firm through a general partnership agreement. They have been solid friends since law school. However, If times get tough and Mark runs out on the practice, Is John protected by the partnership arrangement against the partnership debts? Yes, since John and Mark have enlered into a partnership. John would only be held responsible for his share of the partnership debts. No. since partners typically have jolnt and several liability, John can be neld responsible for 100% of the partnership debts. Yes, the Uniform Partnership Act guarantees that all bills and debt are split equally between partners. There is not enough information provided to make a determination regarding John's responsibility for the partnership debts. Explanation Partners usually have joint and several liability, which means that a partner can be dinged for 100% of the partnership debls and will have to pursue his partners for their share. Watch Correct Answer Correct Which of the following Is NOT a major factor when an entrepreneur Is choosing the type of business organization to form? the state where the business is located [Show More]

Last updated: 11 months ago

Preview 1 out of 262 pages