Quiz Ch 01 – Limited Partnership: Identifying Correct Statements
Essentials of Corporate Finance
Ross, Westerfield, and Jordan
10th Edition
What accurately describes a limited partnership?
What accurately describes a limited partnership?
As Margie owns a used bookstore and is personally responsible for all its debts, which type of business entity does she possess?
What is the term used to describe an employee’s claim on the cash flows of Martin’s Machines, which represents a claim by one of the firm’s entities?
Matt and Alicia have established a business entity where they will have shared ownership on a 75/25 basis and will not bear personal liability for the firm’s debts. Which type of entity have they created?
What is most aligned with the corporate area of finance?
Who is allowed to sell shares of ABC stock in the primary market?
In a general partnership, what statement accurately describes the personal liability of each partner?
What is the main objective of financial management in a sole proprietorship?
What was the primary factor that prompted the implementation of the Sarbanes-Oxley Act in 2002, in response to events that occurred in the 1990s?
What is the primary purpose of limited liability companies (LLCs)?