Exam 13: Business Organization and Financial Data

Of the following forms of organization, which businesses generate the smallest sales?

On the balance sheet, total assets minus net fixed assets equals:

Income from partnerships and proprietorships is combined with other personal income for tax purposes.

Computation of a firm's market value added (MVA) includes which of the following components?

From the financial manager's perspective, profits are what matters most.

A cash dividend is a use of cash flows.

Funds supplied by the owners and represents their residual claim on the firm.

The balance sheet equation or accounting identity can be written as: assets equal liabilities plus owners' equity.

The bylaws are the rules established to govern the corporation and include how the firm will be managed.

The amount of cash flowing into the firm can be higher or lower than the net income figure.

The corporate form of organization is recognized in many countries. Which one of the following does not designate a corporation?

Which of the following activities is not under the treasurer?

For individuals, capital gains are taxed as ordinary income.

Under partnership law, each partner has unlimited liability for all the debts of the firm.

Principals are managers hired by the principals to run the firm.

Cash flows from operating activities might include:

Statement of a firm's main reason for being.

Two basic tools that can be used to reduce the consequences of managers making self-serving decisions include offering managers stock options and offering managers restricted stock.

Only corporations have owners' equity.

The marginal tax rate is the rate paid on the last dollar of income.