Capital budgeting is concerned with

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Reference no: EM131625124

1. Which of the following categories of owners enjoy limited? liability?

A. all partners in a limited partnership

B. common shareholders of a corporation

C. in a? partnership, only the general partners

D. only B and C above

2. Maximizing shareholder wealth means maximizing the

A. value of the? firm's investments.

B. value of the? firm's profits.

C. market value of the? firm's common stock.

D. value of the? firm's assets.

E. value of the? firm's cash.

3. Capital budgeting is concerned with

A. whether a? company's assets should be financed with debt or equity.

B. what long-minus term investments a firm should undertake.

C. managing a? firm's cash budgeting procedures.

D. planning sales of a? corporation's equity capital.

4. Joe is deciding whether or not to invest? $10,000 in a business that has pending lawsuits against it. If Joe invests and the business loses the? lawsuits, the most Joe can lose is

A. ?$10,000 if Joe is a general partner.

B. ?$10,000 if Joe is a sole proprietor.

C. ?$10,000 plus his share of the lawsuits if Joe is a limited partner.

D. ?$10,000 if Joe is a limited partner.

Reference no: EM131625124

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