Answer the following statements true (T) or false (F)
1. In a limited partnership, all partners' liabilities are limited to their investment in the partnership.
2. Firms are legally required to pay dividends to stockholders just as they must make interest payments to lenders.
3. Dividends are periodic distributions of cash to the stockholders of a firm.
4. In partnerships, owners have unlimited liability and may have to cover debts of other less financially sound partners.
5. The board of directors is responsible for managing day-to-day operations and carrying out the policies established by the chief executive officer.
1. TRUE
2. FALSE
3. TRUE
4. TRUE
5. FALSE
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Indicate whether the statement is true or false
The Supreme Court separated the "mandatory" element of the Federal Sentencing Guidelines for Organizations from their advisory role, holding that their mandatory nature:
A. violated the Sixth Amendment right to a jury trial. B. provided arbitrary punishments. C. encouraged internal whistle-blowing. D. was only applicable to individuals and not to organizations.
Revenues and expenses are transferred to the ________ account before their final transfer into the Retained Earnings account
A) Net Income B) Income Summary C) Dividends D) Assets
Suppose a surgeon is sued for negligence by a patient for having accidentally botched an operation. The standard that applies to the surgeon is the reasonable person, which means:
a. strict liability b. the care expected of any ordinary person under the circumstances c. proximate cause is established res ipsa loquitur d. none of the other choices; surgeons are exempt from liability e. none of the other choices