Intermediate Financial Management
14th Edition
ISBN: 9780357516782
Author: Brigham, Eugene F., Daves, Phillip R.
Publisher: Cengage Learning
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Students have asked these similar questions
Match each corporate characteristic 1 through 8 with the description that best relates to it.
Characteristic
Descriptions
1. Transferability of ownership
2. Ability to raise large capital amounts
3. Duration of life
4. Legal status
Entity with similar rights as individual
5. Ease of formation
High because buying stock is attractive
6. Government regulation
Indefinite
7. Mutual agency
More severe than partnerships and proprietorships
8. Owner authority and control
TT TT O
Q: Compare the characteristics of organizational and legal forms of enterprises:
Criteria
The organizational and legal form
Individual entrepreneur
Economic partnership
(LLC)
Economic society
(JSC)
Simplicity of the creation
Control over the activities
Liability of the owners
Investment Liquidity*
Period of existence
Which of the following forms of business organization can finance its operation through acquiring bank term loan and by issuance of equity securities?
General Professional Partnership
Single proprietorship
Limited partnership
Corporation
Knowledge Booster
Similar questions
- 2. Limited liability is an important feature of: A. CorporationsB. Both partnerships and corporationsC. Sole proprietorshipsD. Partnerships 4. The ultimate financial goal of a corporation is to: A. maximize the value of the corporation to the stockholders.B. increase size of the firm.C. minimize stockholder risk.D. maximize profit. 7. Shareholders of a corporation may be, among others, A. pension funds.B. individuals, pension funds, and insurance companies.C. individuals and pension funds.D. individuals.arrow_forwardClassify the following users of information as either: I—internal user T—external user: trading partner S—external user: stakeholder a. Internal Revenue Service b. Inventory control manager c. Board of directors d. Customers e. Lending institutions f. Securities and Exchange Commission g. Stockholders h. Chief executive officer i. Suppliers j. Bondholdersarrow_forwardWhich of the following best defines stakeholders? A. investors and lenders B. environmental groups C. anyone directly or indirectly affected by the organization D. groups or individuals financially impacted by the organizationarrow_forward
- Multiple choice: All of the following are forms of business organizations except: A. proprietorship B. partnership C. corporation D. governmental unit 2. An entity where ownership is divided into shares of stock is a: A. proprietorship B. trade agreement C. corporation D. mutual agencyarrow_forwardQuestion A _______________is a separate entity and in that capacity can borrow from banks, bondholders, preferred stockholders, and common shareholders. A. limited partnership B. sole proprietorship C. government organization D. public companyarrow_forward4.3 Which of the following will constitute a line item in a close corporation’s statement of members’ net investment? A Member’s contributions B Revaluation surplus / reserve C Loans from members D Current accountsarrow_forward
- The principle of equity I. Is the principle behind a cooperative s interest on share capital Il. Is one which states that net surplus is not a profit but as excess of payments made by the members for the Loans borrowed, or the goods and services bought by them from the cooperative and Ill. Is one where an equal right of members to participate in the organization and to equitably share in the benefits accruing is established. A. I, II and IIIB. I and IIIC. I and IID. I onlyarrow_forwardWhen a financial institution is a mutual association, it means that it is owned by the Group of answer choices local government. borrowers. management. depositors. creditors.arrow_forward________ is a separate entity and in that capacity can borrow from banks, bondholders, preferred stockholders, and common shareholders. A. limited partnership B. sole proprietorship C. government organization D. public companyarrow_forward
- Choose the best answer Underwriting an issue is the domain of: a. commercial bank b.the central bank c.the stock exchange d.an investment bankarrow_forwardWhich type of business organization requires huge amount of capital? a. Joint venture b. Corporation c. Sole trader d. Partnershiparrow_forwardDistinguish stockholders/board of directors/incorporators from partners/managing partners.arrow_forward
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