Finance > TEST BANKS > Financial Management Theory and Practice, 4th Canadian Edition Eugene Brigham Test Bank (All)
Financial Management Theory and Practice, 4th Canadian Edition Eugene Brigham Test Bank
Document Content and Description Below
Indicate whether the statement is true or false. 1. Three disadvantages of a proprietorship are (1) the relative difficulty of raising new capital, (2) the owner’s unlimited personal liabil... ity for the business’s debts, and (3) that the proprietorship is easily but expensively formed. a. True b. False 2. Limited partners who are too involved in the business operation can keep their limited liability status. a. True b. False 3. Two key advantages to a proprietorship are that, as a business, it pays no corporate income tax and it is easy for a proprietorship to obtain the capital needed for growth. a. True b. False 4. If an individual investor trades currently outstanding common shares through a broker, this is a primary market transaction. a. True b. False 5. Today, banks can never provide trustee services and the difference between trusts and banks has become clear over time. a. True b. False 6. Equity instruments are a claim upon a residual value, but preferred shares have some features like debt and some like equity. a. True b. False 7. In a limited liability partnership (LLP), only some partners enjoy limited liability with regard to their business partners’ professional negligence, and their potential losses are limited to their investment in the LLP. a. True b. False 8. If Firm A’s business is to obtain funds from savers in exchange for its own securities and then to use the money to invest in other businesses’ securities, Firm A is a financial intermediary. a. True b. False [Show More]
Last updated: 8 months ago
Preview 1 out of 514 pages
Buy this document to get the full access instantly
Instant Download Access after purchase
Buy NowInstant download
We Accept:
Reviews( 0 )
$27.00
Can't find what you want? Try our AI powered Search
Document information
Connected school, study & course
About the document
Uploaded On
Nov 30, 2024
Number of pages
514
Written in
Additional information
This document has been written for:
Uploaded
Nov 30, 2024
Downloads
0
Views
13
