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Towson Univer sticky Department of Finance Principles of Financial Management (FIN331) Spring 2010 examen I Name_____________________________ ID#_________________ 1.Which of the adjacent statements is CORRECT? a. one(a) of the improvements of the corporate form of government activity is that it avoids manifold appraiseation. b.It is easier to transfer ones ownership aro drill in a partnership than in a corporation. c.One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. d.One of the advantages of a corporation from a social standpoint is that each monetary fundholder has equal voting rights, i.e., one person, one vote. e. Corporations of all told types are subject to the corporate income tax. serve: c 2. Which of the following is non to salute the agency conflict between shareholders and managers? a. Maximize sales b. admonisher managers activities c. Give incentives based on performance d. Offer stock shares or stock options e. Hostile takeover threat resolving: a 3. What is the main advantage of S-corp relative to C-corp? a. Profit boundary line b. Single taxation c. Limited liability d.

Dividend policy e. with child(p) structure Answer: b S-corp Distribution is taxed only at once at personal income tax rate. In other words, a single taxation 4.Which of the following mechanisms would be most in all likelihood to help motivate managers to act in the best interests of shareholders? a! .Decrease the use of restrictive covenants in perplex agreements. b.Take actions that reduce the possibility of a hostile takeover. c. prefer a board of directors that allows managers greater liberty of action. d.Increase the comparison of executive compensation that comes from stock options and reduce the dimension that is compensable as cash salaries. e.Eliminate a requirement...If you want to sit a full essay, order it on our website: OrderEssay.net

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