Fin 534 Week 1 Homework Assignment Chapter 1
August 31, 2013
Fin 534 (Week 1 Homework Assignment Chapter 1)
Fin 534 Week 1: Homework Assignment Chapter 1
1. Which of the following statements is CORRECT?
a. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability.
b. It is generally easier to transfer one’s ownership interest in a partnership than in a corporation.
c. One of the advantages of the corporate form of organization is that it avoids double taxation.
d. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one person, one vote.”
e. Corporations of all types are subject to the corporate and personal income tax.
2. Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?
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