Question 7

Noahs Haberdashery has $56,000 in current assets and $41,000 in current liabilities. According to the textbook, Noahs decisions related to the comparison of these two accounts should be referred to as:

(a) capital structuring decisions;

(b) capital budgeting decisions;

(c) management of working capital;

(d) operations management; or

(e) variable account structuring.

Question 8

On a day-to-day basis, the financial operations of an organization are generally controlled by managing the:

(a) total debt level;

(b) working capital;

(c) capital structure;

(d) financial fraud; or

(e) long-term liabilities.

Question 9

Of the following choices, below, which one offers liability protection to some owners, but not all owners?

(a) sole proprietorship;

(b) general partnership;

(c) limited partnership;

(d) limited liability company; or

(e) corporation.

Question 10

Forming a corporation has many advantages. One such advantage a corporation enjoys is:

(a) in the taxation of corporate profit;

(b) unlimited tickets to Anthony and Phillips rock opera;

(c) in the double taxation of profit;

(d) the ability to raise very large amounts of equity capital; or

(e) the ease of formation compared to other organizational forms.