finanical management
True/False 1.The financial manager should examine available risk-return trade-offs and make his decision based upon the greatest expected return.
False
2.Only a few financial decisions involve some sort of risk-return tradeoff.
False
3.The sole proprietorship can be described as the absence of any legal business structure.
True
4.In a general partnership, all partners have unlimited liability for the actions of any one partner when that partner is conducting business for the firm.
True
5.There is no legal distinction made between the assets of the business and the personal assets of the owners in the limited partnership.
False
6.General partners have unrestricted transferability of ownership, while limited partners must have the consent of all partners to transfer their ownership.
False
7.Ultimate control in a corporation is vested in the board of directors.
False
8.There are a significant number of legal requirements to follow when establishing a sole proprietorship.
False
9.Limited partners may actively manage the business.
False
10.The life of a corporation is not dependent upon the status of the investors.
True
11.A sole proprietorship is the most desirable business form in all circumstances.
False
12.In a sole proprietorship, the owner is personally responsible without limitation for the liabilities incurred.
True
13.In a limited partnership, at least one general partner must remain in the association; the privilege of limited liability still applies to this partner.
False
14.In a general partnership, there is a distinction between business and personal assets.
False
15.In order to maximize shareholder wealth, a firm must consider historical costs as an integral part of their decision-making.
16.Financial management is concerned with the maintenance and creation of wealth. True
True
17.Shareholder wealth is measured by the market value of the firm's
False
2.Only a few financial decisions involve some sort of risk-return tradeoff.
False
3.The sole proprietorship can be described as the absence of any legal business structure.
True
4.In a general partnership, all partners have unlimited liability for the actions of any one partner when that partner is conducting business for the firm.
True
5.There is no legal distinction made between the assets of the business and the personal assets of the owners in the limited partnership.
False
6.General partners have unrestricted transferability of ownership, while limited partners must have the consent of all partners to transfer their ownership.
False
7.Ultimate control in a corporation is vested in the board of directors.
False
8.There are a significant number of legal requirements to follow when establishing a sole proprietorship.
False
9.Limited partners may actively manage the business.
False
10.The life of a corporation is not dependent upon the status of the investors.
True
11.A sole proprietorship is the most desirable business form in all circumstances.
False
12.In a sole proprietorship, the owner is personally responsible without limitation for the liabilities incurred.
True
13.In a limited partnership, at least one general partner must remain in the association; the privilege of limited liability still applies to this partner.
False
14.In a general partnership, there is a distinction between business and personal assets.
False
15.In order to maximize shareholder wealth, a firm must consider historical costs as an integral part of their decision-making.
16.Financial management is concerned with the maintenance and creation of wealth. True
True
17.Shareholder wealth is measured by the market value of the firm's