Module 1_ Mastery Exercise_ 23FB-FIN300-2

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Moorpark College *

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FIN300

Subject

Finance

Date

Feb 20, 2024

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pdf

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6

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Module 1: Mastery Exercise Due No due date Points 10 Questions 10 Time Limit None Allowed Attempts Unlimited Instructions Attempt History Attempt Time Score LATEST Attempt 1 5 minutes 10 out of 10 Correct answers are hidden. Score for this attempt: 10 out of 10 Submitted Aug 20 at 10:45pm This attempt took 5 minutes. Complete this graded mastery exercise on topics that were covered in the Interactive Lecture. Take the Quiz Again 1 / 1 pts Question 1 Which of the following legal forms of organization is characterized by limited liability? sole proprietorship partnership professional partnership corporation
Correct! Limited liability companys (LLC) members and a corporations shareholders all enjoy limited liability. 1 / 1 pts Question 2 Strengths of the _____ form of business ownership include the owner receiving all profits, low organizational costs and ease of dissolution, and having income included on the owner's personal tax return. holding company partnership sole proprietorship Correct! The partnership and the sole proprietorship forms of business are both flow-through entities meaning that the business is not taxed, but the taxable income is passed through to the owners personal tax. corporation 1 / 1 pts Question 3 Which of the following legal forms of organization is most expensive to organize? Sole proprietorships Corporations Correct! To form a corporation, the organization must file articles of incorporation with the state and incur other legal costs.
Partnerships Limited partnership 1 / 1 pts Question 4 _____ are periodic distribution of earnings to the _____. dividends; stockholders Correct! Shareholders are rewarded with periodic dividends. interest payments; stockholders interest payments; bondholders dividends; bondholders 1 / 1 pts Question 5 About 75 percent of all business firms are Corporations Sole proprietorships Correct! Although corporations make up the majority of large businesses, there are more sole proprietorships than any other form of business in the U.S. Partnerships
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