Test Bank For Financial Management Theory and Practice 15th Edition By Brigham

1. The form of organization for a business is not an important issue, as this decision has very little effect on the income and wealth of the firm’s owners.

	a.	True
	b.	False

ANSWER:	False
POINTS:	1
DIFFICULTY:	Difficulty: Easy
QUESTION TYPE:	True / False
HAS VARIABLES:	False
LEARNING OBJECTIVES:	FMTP.EHRH.17.01.03 – LO: 1-3
NATIONAL STANDARDS:	United States – BUSPROG: Reflective Thinking
STATE STANDARDS:	United States – AK – DISC: Goals of the firm, role of – DISC: Goals of the firm, role of finance, and analysis of public information
LOCAL STANDARDS:	United States – OH – Default City – TBA
TOPICS:	Firm organization
KEYWORDS:	Bloom’s: Knowledge
DATE CREATED:	8/26/2015 10:43 AM
DATE MODIFIED:	8/26/2015 10:43 AM
QUESTION ID:	JFND-GO4G-EO5U-ECKG

QUESTION GLOBAL ID:

GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-GO3D-EA3O-CJDI-GWN8-EPRW-EMJW-CRHU-C3B3-CO4S-RCBA-CWSU-N3JI-CRSU-N3B3-GOSU-NA5D-CCSU-OATA-GBTG-ECDF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

2. The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not.

	a.	True
	b.	False

ANSWER:	False
POINTS:	1
DIFFICULTY:	Difficulty: Easy
QUESTION TYPE:	True / False
HAS VARIABLES:	False
LEARNING OBJECTIVES:	FMTP.EHRH.17.01.03 – LO: 1-3
NATIONAL STANDARDS:	United States – BUSPROG: Reflective Thinking
STATE STANDARDS:	United States – AK – DISC: Goals of the firm, role of – DISC: Goals of the firm, role of finance, and analysis of public information
LOCAL STANDARDS:	United States – OH – Default City – TBA
TOPICS:	Firm organization
KEYWORDS:	Bloom’s: Knowledge
DATE CREATED:	8/26/2015 10:43 AM
DATE MODIFIED:	8/26/2015 10:43 AM
QUESTION ID:	JFND-GO4G-EO5U-ECKF

QUESTION GLOBAL ID:

GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-GO3D-EA3O-CJDI-GWN8-EPRW-EMMG-GOHG-EPMF-GJOU-GA3T-GASS-EP3U-8RSS-RPTT-GOSU-GATT-GRSS-RC3O-CR3U-KPMF-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE

3. There are three primary disadvantages of a regular partnership: (1) unlimited liability, (2) limited life of the organization, and (3) difficulty of transferring ownership. These combine to make it difficult for partnerships to attract large amounts of capital and thus to grow to a very large size.

	a.	True
	b.	False

ANSWER:	True
POINTS:	1
DIFFICULTY:	Difficulty: Easy
QUESTION TYPE:	True / False
HAS VARIABLES:	False
LEARNING OBJECTIVES:	FMTP.EHRH.17.01.03 – LO: 1-3
NATIONAL STANDARDS:	United States – BUSPROG: Reflective Thinking
STATE STANDARDS:	United States – AK – DISC: Goals of the firm, role of – DISC: Goals of the firm, role of finance, and analysis of public information
LOCAL STANDARDS:	United States – OH – Default City – TBA
TOPICS:	Partnership
KEYWORDS:	Bloom’s: Knowledge
DATE CREATED:	8/26/2015 10:43 AM
DATE MODIFIED:	8/26/2015 10:43 AM
QUESTION ID:	JFND-GO4G-EO5U-ECKR

QUESTION GLOBAL ID:

GCID-E7BW-1TBP-8YHU-NC3Z-GC5D-GCTT-8BUN-43JT-CFO1-43JT-GR4N-43UD-GY3N-4ATT-GO3D-EA3O-CJDI-GWN8-EPRW-EMJI-GFOS-K3TI-GYAG-EPUG-COSS-KPJS-CESU-CPT3-GOSS-R3UR-CESU-YPMB-GC4S-GQJW-E7JI-YT4D-JFNN-4OTI-GO4W-NQNBEE