Multiple Choice 1. Which one of the following statements concerning a proprietorship is true? A. A proprietorship can be a business jointly owned by two family members. B. Income from a proprietorship is taxed as a separate entity. C. A proprietor is personally responsible for 100% of the firm's liabilities. D. A partial transfer of ownership is easier with a proprietorship than with a corporation. 2. The best definition of capital structure is: A. The possibility of conflicts between shareholders and management in a large corporation. B. The process of planning and managing a firm's long-term investments. C. A venue where long-term debt and equity securities are bought and sold. D. How a firm is financed through different proportions of debt and equity. 3. Sue Folker wants to start a new business decommissioning nuclear warheads and reactors. The work will involve significant hazards, and Sue is concerned about protecting her personal wealth from any losses the business might incur. If she is to be the majority owner of the business, how should she structure it? A. As a corporation. B. As a general partnership. C. As a limited partnership. D. As a sole proprietorship. 4. Dale invests $500 in an account that pays 6% simple interest. How much more could he have earned over a thirty-year period if the interest had compounded annually? A. $1,471.75 B. $1,532.50 C. $1,621.25 D. $1,804.25 5.Coco Co. just paid a dividend of $1.55 per share on its stock. The dividends are expected to grow at a constant rate of 4% per year indefinitely. If investors require an 8% return on CoCo Co. stock, what is the current price? Select one: A. $38.75 B. $19.38 C. 40.30
1. Which one of the following statements concerning a proprietorship is true? A. A proprietorship can be a business jointly owned by two family members. B. Income from a proprietorship is taxed as a separate entity. C. A proprietor is personally responsible for \100 of the firm's liabilities. D. A partial transfer of ownership is easier with a proprictorship than with a corporation. 2. The best definition of capital structure is: A. The possibility of confliets between shareholders and management in a large corporation. B. The process of planning and managing a firm's long-term investments. C. A venue where long-term debt and equity securities are bought and sold. D. How a firm is financed through different proportions of debt and equity. 3. Sue Folker wants to start a new business decommissioning nuclear warheads and reactors. The work will involve significant hazards, and Sue is concerned about protecting her personal wealth from any losses the business might incur. If she is to be the majority owner of the business, how should she structure it? A. As a corporation. B. As a general partnership. C. As a limited partnership. D. As a sole proprietorship. 4. Dale invests \\( \\$ 500 \\) in an account that pays \6 simple interest. How much more could he have earned over a thirty-year period if the interest had compounded annually? A. \\( \\$ 1,471.75 \\) B. \\( \\$ 1,532.50 \\) C. \\( \\$ 1,621.25 \\) D. \\( \\$ 1,804.25 \\) 5.Coco Co. just paid a dividend of \\( \\$ 1.55 \\) per share on its stock. The dividends are expected to grow at a constant rate of \4 per year indefinitely. If investors require an \8 return on CoCo Co. stock, what is the current price? Select one: A. \\( \\$ 38.75 \\) B. \\( \\$ 19.38 \\) C. 40.30 1. Which one of the following statements concerning a proprietorship is true? A. A proprictorship can be a business jointly owned by two family members. B. Income from a proprietorship is taxed as a separate entity. C. A proprietor is personally responsible for \100 of the firm's liabilities. D. A partial transfer of ownership is easier with a proprictorship than with a corporation. 2. The best definition of capital structure is: A. The possibility of conflicts between shareholders and management in a large corporation. B. The process of planning and managing a firm's long-term investments. C. A venue where long-term debt and equity securities are bought and sold. D. How a firm is financed through different proportions of debt and equity. 3. Sue Folker wants to start a new business decommissioning nuclear warheads and reactors. The work will involve significant hazards, and Sue is concerned about protecting her personal wealth from any losses the business might incur. If she is to be the majority owner of the business, how should she structure it? A. As a corporation. B. As a general partnership. C. As a limited partnership. D. As a sole proprictorship. 4. Dale invests \\( \\mathbf{S} 500 \\) in an account that pays \6 simple interest. How much more could he have eamed over a thirty-year period if the interest had compounded annually? A. \\( \\$ 1,471.75 \\) B. \\( \\$ 1,532.50 \\) C. \\( \\$ 1,621.25 \\) D. \\( \\$ 1,804.25 \\) 5. Coco Co. just paid a dividend of \\( \\$ 1.55 \\) per share on its stock. The dividends are expected to grow at a constant rate of \4 per year indefinitely. If investors require an \8 return on CoCo Co. stock, what is the current price? Select one: A. \\( \\$ 38.75 \\) B. \\( \\$ 19.38 \\) C. 40.30 D. \\( \\$ 45.00 \\)