ERAU MBAA518 Module 1 Readings and Videos Quiz 1

May 30th, 2016
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Question Question 1 2 / 2 pts The corporate document that sets forth the business purpose of a firm is the: state tax agreement. corporate bylaws. articles of incorporation. indenture contract. debt charter. Question 2 2 / 2 pts Agency costs refer to: the total dividends paid to stockholders over the lifetime of a firm. the costs that result from default and bankruptcy of a firm. the costs of any conflicts of interest between stockholders and management. the total interest paid to creditors over the lifetime of the firm. corporate income subject to double taxation. Question 3 2 / 2 pts Which one of the following is a capital budgeting decision? Deciding when to repay a long-term debt Determining how much debt should be borrowed from a particular lender Determining how much money should be kept in the checking account Determining how much inventory to keep on hand Deciding whether or not to open a new store Question 4 2 / 2 pts Which one of the following statements is correct? Both partne

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ERAU MBAA518 module 1 Readings and Videos Quiz 1Report this Question as InappropriateQuestionQuestion 12 / 2 ptsThe corporate document that sets forth the business purpose of a firm is the:state tax agreement.corporate bylaws.articles of incorporation.indenture contract.debt charter.Question 22 / 2 ptsAgency costs refer to:the total dividends paid to stockholders over the lifetime of a firm.the costs that result from default and bankruptcy of a firm.the costs of any conflicts of interest between stockholders and management.the total interest paid to creditors over the lifetime of the firm.corporate income subject to double taxation.Question 32 / 2 ptsWhich one of the following is a capital budgeting decision?Deciding when to repay a long-term debtDetermining how much debt should be borrowed from a particular lenderDetermining how much money should be kept in the checking accountDetermining how much inventory to keep on handDeciding whether or not to open a new storeQuestion 42 / 2 ptsWhich one of the following statements is correct?Both partnerships and corporations incur double taxation.Both partnerships and corporations have limited liability for general partners and shareholders.Both sole proprietorships and partnerships are taxed in a similar fashion.All types of business formations have limited lives.Partnerships are the most complicated type of business to form.Question 52 / 2 ptsThe rules by which corporations govern themselves a

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