1. Question : Money markets are markets for ______.
Student Answer: foreign stocks
consumer automobile
loans
U.S. stocks
short-term debt
securities
long-term bonds
Points Received: 6 of 6
Comments:
2. Question
...
1. Question : Money markets are markets for ______.
Student Answer: foreign stocks
consumer automobile
loans
U.S. stocks
short-term debt
securities
long-term bonds
Points Received: 6 of 6
Comments:
2. Question : Which of the following could explain why a business might choose to
organize as a corporation rather than as a sole proprietorship or a
partnership?
Student Answer: A. Corporations
generally face fewer
regulations.
B. Corporations
generally face lower
taxes.
C. Corporations
generally find it easier to
raise capital.
D. Corporations enjoy
unlimited liability.
E. Statements C and D
are correct.
Instructor Explanation: The advantages of incorporation include unlimited
life, easy transferability of ownership interest,
limited liability, and ease of raising money in the
capital markets. Regulations and double taxation
are disadvantages of corporations.
Points Received: 6 of 6
Comments:
3. Question : Which of the following statements is true?
Student Answer: One of the benefits of
incorporating your
business is that you
become entitiled to
receive unlimited liability.
Sole proprietorships are
subject to more
regulations than
corporations.
Sole proprietorships do
not have to pay
corporate tax.
All of the above answers
are correct.
None of the above
answers are correct.
Instructor Explanation: Sole proprietorships pay personal income tax, not
corporate tax. The other statements are false.
Corporations are subject to limited liability, but are
subject to more regulations than the other forms of
business organizations.
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