Quiz Ch 01 – Relaxant Inc.
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
Which of the following statements is ACCURATE following the conversion of Relaxant Inc. from a partnership to a corporation?
Which of the following statements is ACCURATE following the conversion of Relaxant Inc. from a partnership to a corporation?
True or false? Due to financial scandals in the last decade, there has been a significant drive to enhance business ethics.
True or false? If management conducts operations to optimize the firm’s anticipated profits for the present year, it will concurrently optimize stockholders’ wealth for the current year.
True or False: Does the corporate form of organization provide an advantage by preventing double taxation?
True or False: In a corporation, the board of directors holds the highest authority, the chairman of the board is the highest-ranking individual, and a person can serve as both CEO and chairman of the board.
True or False: The likelihood of a firm being organized as a corporation increases as its capital requirements grow.
True or false? Does organizing as a corporation facilitate capital raising due to limited personal liabilities for stockholders in case of bankruptcy and the greater ease of transferring shares compared to partnership interests?
True or False: In most corporations, does the CFO hold a position subordinate to the CEO?
True or False: Creating a corporation is usually cheaper than establishing a proprietorship due to the extensive legal documents necessary for a proprietorship.
True or False: Can partners within a partnership have distinct rights, privileges, and responsibilities from each other?