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Test bank (Complete Download) for Intermediate Financial Management 13th Edition Eugene F. Brigham, Phillip R. Daves ISBN: 9781337395083 Instantly Downloadable Test Bank

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Test bank (Complete Download) for Intermediate Financial Management 13th Edition Eugene F. Brigham, Phillip R. Daves ISBN: 9781337395083 Instantly Downloadable Test Bank

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Test bank (Complete Download) for Intermediate Financial Management 13th Edition Eugene F. Brigham, Phillip R. Daves ISBN: 9781337395083 Instantly Downloadable Test Bank

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SAMPLE CHAPTER

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: IFMG.DAVE.19.01.03 – 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: 10/30/2017 8:01 PM
DATE MODIFIED: 1/6/2018 12:00 PM

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: IFMG.DAVE.19.01.03 – 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: 10/30/2017 8:01 PM
DATE MODIFIED: 1/6/2018 12:00 PM

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: IFMG.DAVE.19.01.03 – 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: 10/30/2017 8:01 PM
DATE MODIFIED: 1/6/2018 12:00 PM

4. Two disadvantages of a proprietorship are (1) the relative difficulty of raising new capital and (2) the owner’s unlimited personal liability for the business’ debts.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: IFMG.DAVE.19.01.03 – 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: Proprietorship
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED: 1/6/2018 12:00 PM

5. One key value of limited liability is that it lowers owners’ risks and thereby enhances a firm’s value.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Difficulty: Easy
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: IFMG.DAVE.19.01.03 – 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: Limited liability
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED: 1/6/2018 12:00 PM

6. The disadvantages associated with a proprietorship are similar to those under a partnership. One exception relates to the more formal nature of the partnership agreement and the commitment of all partners’ personal assets. As a result, partnerships do not have difficulty raising large amounts of capital.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Difficulty: Moderate
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: IFMG.DAVE.19.01.03 – 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: Comprehension
DATE CREATED: 10/30/2017 8:01 PM
DATE MODIFIED: 1/6/2018 12:00 PM

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