If you are a small business owner looking for a loan, a bank will expect you to ________.
A. find equity investors to spread the bank's risk
B. incorporate in order to maximize cash flow
C. personally guarantee that you will be responsible for the business loan
D. incorporate in order to avoid taxation
Answer: C
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Key differences between U.S. GAAP and IFRS regarding deferred taxes include all of the following except:
A. reporting of deferred taxes on the balance sheet. B. use of the asset-liability approach. C. uncertain tax positions. D. reconciliation of statutory and effective tax rates.
The work sheet is used to gather information needed to prepare adjusting entries and prepare financial statements
Indicate whether the statement is true or false
Which of the following correctly states the proper order of the steps in the accounting cycle?
A. Record transactions, adjust accounts, close temporary accounts, prepare statements. B. Record transactions, adjust accounts, prepare statements, close temporary accounts. C. Adjust accounts, prepare statements, record transactions, close temporary accounts. D. Adjust accounts, record transactions, close temporary accounts, prepare statements.
Which of the following is true of the assumptions outlined by the capital structure theory published by Professors Franco Modigliani and Merton Miller (MM)??
A. ?Personal income taxes are deductible. B. ?Brokerage costs do not exist. C. ?The value of the firm will be maximized by financing completely through equity. D. ?A high debt/assets ratio decreases the value of the firm. E. ?Bankruptcy costs are high when the firm uses no debt.