Multiple Choice: True/False
(1-1) Role offinance F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn1″ title=””>[i]. In most corporations, theCFO ranks under the CEO.
a. True
b. False
(1-1) Role of finance F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn2″ title=””>[ii]. The Chairman of the Board must also bethe CEO.
a. True
b. False
(1-1) Role of finance F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn3″ title=””>[iii]. The board of directors is the highest ranking body in a corporation, and the chairman of the board is thehighestranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person.
a. True
b. False
(1-3) Forms of organization F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn4″ title=””>[iv]. Partnerships and proprietorships generally have a tax advantage over corporations.
a. True
b. False
(1-3) Forms of organization F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn5″ title=””>[v]. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership.
a. True
b. False
(1-3) Forms of organization F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn6″ title=””>[vi]. An advantage of the corporate form of organization is that corporations are generally less highly regulated than proprietorships and partnerships.
a. True
b. False
(1-3) Forms of organization F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn7″ title=””>[vii]. Some partners in a partnership may have different rights, privileges, and responsibilities than other partners.
a. True
b. False
(1-3) Forms of organization F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn8″ title=””>[viii]. One advantage of the corporate form of organization is that it avoids double taxation.
a. True
b. False
(1-3) Forms of organization F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn9″ title=””>[ix]. It is generally harder to transfer ones ownership interest in a partnership than in a corporation.
a. True
b. False
(1-3) Forms of organization F M
.%20Brigham.zip/BH_eFM3_TB_ch01.doc#_edn10″ title=””>[x]. One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. This problem would be avoided if you formed a corporation to operate the business.
a. True
b. False
