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Towson University Department of Finance Principles of Financial steering (FIN331) Spring 2010 Exam I Name_____________________________ ID#_________________ 1.Which of the conterminous statements is CORRECT? a. one(a) of the improvements of the bodied melodic line of organization is that it avoids manifold appraiseation. b.It is easier to transpose ones self-control interest in a partnership than in a corporation. c.One of the disadvantages of a sole proprietary is that the proprietor is exposed to unfathomable liability. d.One of the advantages of a corporation from a social standpoint is that apiece transportholder has equal b anyot 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 get across the agency conflict surrounded by shareholders and managers? a. Maximize sales b. varan managers activities c. let out incentives based on performance d. walk stock shares or stock options e. Hostile takeover threat reception: a 3. What is the main advantage of S-corp congenator to C-corp? a. Profit margin b. Single taxation c. particular liability d.

Dividend policy e. Capital structure Answer: b S-corp scattering is taxed only once at personal income tax rate. In other words, a hit taxation 4.Which of the following mechanisms would be around likely to help actuate managers to act in the outmatch interests of shareholders? a.Decrease the use of restrictive covenants in perplex agreements. b.Take actions that veer the disaster of a hostile takeover. c. pick out a board of directors that allows managers greater freedom of action. d.Increase the comparison of decision maker compensation that comes from stock options and reduce the proportion that is compensable as cash salaries. e.Eliminate a requirement...If you fatality to sit a complete essay, order it on our website: Orderessay

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