Finance Quiz 2
Quiz by Jamal Haider Naqvi
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- Q1
Partnerships and proprietorships generally have a tax advantage over corporations.
truefalseTrue or False30s - Q2
A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in atypical partnership
falsetrueTrue or False30s - Q3
One advantage of the corporate form of organization is that it avoids double taxation.
falsetrueTrue or False30s - Q4
In order to maximize its shareholders' value, a firm's management must attempt to maximize the stock price on a specific target date.
falsetrueTrue or False30s - Q5
If a stock's intrinsic value is greater than its market price, then the stock is over-valued and should be sold
falsetrueTrue or False30s - Q6
The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to
Maximize its expected total corporate income.
Maximize the stock price on a specific target date
Minimize the chances of losses
Maximize the stock price per share over the long run.
60s - Q7
If you decide to buy 100 shares of Google, you would probably do so by calling your broker and asking him or her to execute the trade for you. This would be defined as a secondary market transaction, not a primary market transaction.
truefalseTrue or False45s - Q8
It is generally harder to transfer one’s ownership interest in a partnership than in a corporation.
truefalseTrue or False45s - Q9
Which of the following statements is CORRECT?
One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability
Share holders of corporations to the corporate income tax
One of the advantages of the corporate form of organization is that it avoids double taxation
It is easier to transfer one’s ownership interest in a partnership than in a corporation.
45s - Q10
For a stock to be in equilibrium as the book defines it, its market price should exceed its intrinsic value.
falsetrueTrue or False45s