Financial Management - Study Mode
[#851] Shares having no face value are known as
Correct Answer
(A) no par stock
Explanation
Solution: No par stock means shares having no face value. this is issued in USA, UK and Canada.
[#852] Corporate governance charter of rules of behaving is applicable on
Correct Answer
(D) all of above
Explanation
Solution: Corporate governance charter of rules of behaving is applicable on competitors, shareholders and directors.
[#853] Limited partners in partnership business have
Correct Answer
(A) no control
Explanation
Solution: Limited partners in partnership business have no control. Limited partnerships consist of partners who maintain an active role in the management of the business, and those who just invest money and have a very limited role in management. These limited partners are essentially passive investors whose liability is limited to their initial investment. Limited partnerships have more formal requirements than the other two types of partnerships.
[#854] A type of business ownership in which two or more entities join together for profit purpose is classified as
Correct Answer
(A) partnership
Explanation
Solution: A type of business ownership in which two or more entities join together for profit purpose is classified as partnership. A partnership is a formal arrangement by two or more parties to manage and operate a business and share its profits. There are several types of partnership arrangements. In particular, in some partnerships, all partners share liabilities and profits equally, while in others, partners have limited liability.
[#855] Bonds issued to individuals by corporations are classified as
Correct Answer
(B) corporate bonds
Explanation
Solution: Bonds issued to individuals by corporations are classified as corporate bonds. A corporate bond is a debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds.