Quiz Ch 01 – T/F Intangible Assets as Real Assets
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: Intangible assets can be considered real assets.
True or false: Intangible assets can be considered real assets.
True or false? When a subordinate in a company engages in illegal activities, like “cooking the books,” to inflate profits based on instructions from a superior, the lower-level person might avoid prosecution, whereas the superior could face legal action.
True or false: In a limited partnership, general partners have restricted personal liability for business debts.
True or false: Both corporations and sole proprietors exhibit a distinct characteristic: the separation of ownership from management.
True or false: The complete asset value of a firm is wholly owned by the shareholders.
True or False: Opting for a corporation over a partnership makes it more challenging for the firm’s investors to transfer their ownership interests.
True or False: Is it generally more challenging to transfer one’s ownership interest in a partnership compared to a corporation?
True or false: A significant drawback of partnerships is the potential for double taxation of profits.
True or False: Is it a disadvantage of the corporate form of organization that corporate stockholders face greater personal liabilities in the event of bankruptcy compared to investors in a typical partnership?
True or false: Maximizing profits is synonymous with maximizing the firm’s value.