Intermediate Financial Management 12th Edition by Eugene F. Brigham – Test Bank

Test Bank For Intermediate Financial Management 12th Edition by Eugene F. Brigham

1. ISBN-10

   1305720105
2. ISBN-13

   978-1305720107

3. Net web page 1 TEST BANKfor Intermediate Financial Management 12th Edition Brigham Daves. CHAPTER 1—AN OVERVIEW OF FINANCIAL MANAGEMENT AND THE FINANCIAL ENVIRONMENT Cengage Finding out Testing, Powered by Cognero Net web page 1 1. The kind of group for a enterprise simply is not a necessary topic, as this decision has little or no influence on the earnings and wealth of the company’s owners. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Company group KEYWORDS: Bloom’s: Data 2. An important advantage of an on a regular basis partnership or an organization as a sort of enterprise group is the reality that every provide their owners restricted obligation, whereas proprietorships do not. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Company group KEYWORDS: Bloom’s: Data 3. There are three foremost disadvantages of an on a regular basis partnership: (1) limitless obligation, (2) restricted lifetime of the group, and (3) downside of transferring possession. These combine to make it troublesome for partnerships to attract big portions of capital and thus to develop to a very big measurement. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Partnership CHAPTER 1—AN OVERVIEW OF FINANCIAL MANAGEMENT AND THE FINANCIAL ENVIRONMENT Cengage Finding out Testing, Powered by Cognero Net web page 2 KEYWORDS: Bloom’s: Data 4. Two disadvantages of a proprietorship are (1) the relative downside of elevating new capital and (2) the proprietor’s limitless non-public obligation for the enterprise’ cash owed. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Proprietorship KEYWORDS: Bloom’s: Data 5. One key price of restricted obligation is that it lowers owners’ risks and thereby enhances a company’s price. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Restricted obligation KEYWORDS: Bloom’s: Data 6. If a company’s intention is to maximise its earnings per share, that is likely one of the greatest methods to maximise the price of the widespread stock and thus shareholders’ wealth. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.2 – LO: 1-3 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Price maximizationCHAPTER 1—AN OVERVIEW OF FINANCIAL MANAGEMENT AND THE FINANCIAL ENVIRONMENT Cengage Finding out Testing, Powered by Cognero Net web page 3 KEYWORDS: Bloom’s: Data 7. If Company A’s enterprise is to amass monetary financial savings from folks after which make investments them in financial property issued by completely different corporations or folks, Company A is a financial intermediary. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.3 – LO: 1-4 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Financial intermediaries KEYWORDS: Bloom’s: Data 8. The disadvantages associated to a proprietorship are very like these beneath a partnership. One exception pertains to the additional formal nature of the partnership settlement and the dedication of all companions’ non-public property. In consequence, partnerships should not have downside elevating big portions of capital. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Situation: Cheap LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Partnership KEYWORDS: Bloom’s: Comprehension 9. The information {{that a}} proprietorship, as a enterprise, pays no firm earnings tax, and that it is merely and inexpensively common, are two key advantages to that kind of enterprise. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Situation: Cheap LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Reflective Pondering STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public informationCHAPTER 1—AN OVERVIEW OF FINANCIAL MANAGEMENT AND THE FINANCIAL ENVIRONMENT Cengage Finding out Testing, Powered by Cognero Net web page 4 LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Proprietorship KEYWORDS: Bloom’s: Comprehension 10. Which of the subsequent statements is CORRECT? a. One in every of many disadvantages of incorporating a enterprise is that the owners then flip into subject to liabilities inside the event the company goes bankrupt. b. Sole proprietorships are subject to additional legal guidelines than corporations. c. In any kind of partnership, every confederate has the an identical rights, privileges, and obligation publicity as every completely different confederate. d. Sole proprietorships and partnerships normally have a tax profit over many corporations, notably big ones. e. Firms of all kinds are subject to the corporate earnings tax. ANSWER: d RATIONALE: Sole proprietorships and partnerships pay non-public earnings tax, nevertheless they avoid the corporate earnings tax. Small corporations that meet certain requirements can elect to be categorized as S Firms, after which the enterprise is taxed as a partnership. POINTS: 1 DIFFICULTY: Situation: Simple LEARNING OBJECTIVES: INTE.GENE.16.1 – LO: 1-2 NATIONAL STANDARDS: United States – BUSPROG: Analytic STATE STANDARDS: United States – AK – DISC: Targets of the company, place of – DISC: Targets of the company, place of finance, and analysis of public data LOCAL STANDARDS: United States – OH – Default Metropolis – TBA TOPICS: Company group KEYWORDS: Bloom’s: Comprehension OTHER: TYPE: A variety of Various: Conceptual 11. Which of the subsequent statements is CORRECT? a. One in every of many disadvantages of a sole proprietorship is that the proprietor is uncovered to limitless obligation. b. It is normally easier to change one’s possession curiosity in a partnership than in an organization. c. One in every of many advantages of the corporate kind of group is that it avoids double taxation. d. One in every of many advantages of an organization from a social standpoint is that every stockholder has equal voting rights, i.e.,