{"id":987,"date":"2023-03-30T01:36:30","date_gmt":"2023-03-30T01:36:30","guid":{"rendered":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/?post_type=chapter&p=987"},"modified":"2023-04-03T00:25:28","modified_gmt":"2023-04-03T00:25:28","slug":"review-questions-6","status":"publish","type":"chapter","link":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/chapter\/review-questions-6\/","title":{"raw":"Review Questions","rendered":"Review Questions"},"content":{"raw":"

Chapter 14 Review Questions<\/h1>\r\n
\r\n
\r\n
1<\/span>. <\/span>What are the key differences between the potential life of a business that is formed as a sole proprietorship and that of a business set up as a corporation?<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
2<\/span>. <\/span>What are the most common types of firms that are organized as limited liability partnerships?<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
3<\/span>. <\/span>What advantages does a sole proprietorship offer?<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
4<\/span>. <\/span>What are major disadvantages of a sole proprietorship?<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
5<\/span>. <\/span>If a company wishes to limit the liability of some of its investing partners, what form of business might it consider? Explain briefly.<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
6<\/span>. <\/span>In order to form a corporation, what is the most important document required?<\/span><\/div>\r\n<\/div>\r\n<\/section>
\r\n
\r\n
<\/div>\r\n
7<\/span>. <\/span>What is the difference between a shareholder and a stakeholder?<\/span><\/div>\r\n<\/div>\r\n<\/section>
\r\n
\r\n
<\/div>\r\n
8<\/span>. <\/span>What group within a corporation has the primary responsibility for protecting the interests of shareholders?<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
9<\/span>. <\/span>What is corporate governance?<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
10<\/span>. <\/span>What role does a corporation\u2019s board of directors play in corporate governance?<\/span><\/div>\r\n<\/div>\r\n
\r\n
<\/div>\r\n
11<\/span>. <\/span>Briefly explain the concept of corporate governance.<\/span><\/div>\r\n<\/div>\r\n<\/section>
\r\n
\r\n
<\/div>\r\n
12<\/span>. <\/span>What is the key component of agency theory, and why might this be more important to a public company than to one that is privately held?<\/span><\/div>\r\n<\/div>\r\n<\/section>\r\n
<\/div>\r\n
<\/div>\r\n
\r\n\r\nAttribution:<\/strong>\r\n\r\nThis chapter is from \u201cPrinciples of Finance\u201d \u00a0https:\/\/openstax.org\/books\/principles-finance\/pages\/1-why-it-matters<\/a> by Dahlquist and Knight. This book is licensed under the CC-BY<\/a> 4.0 license. 2022 OpenStax.\r\n\r\n<\/div>","rendered":"

Chapter 14 Review Questions<\/h1>\n
\n
\n
1<\/span>. <\/span>What are the key differences between the potential life of a business that is formed as a sole proprietorship and that of a business set up as a corporation?<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
2<\/span>. <\/span>What are the most common types of firms that are organized as limited liability partnerships?<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
3<\/span>. <\/span>What advantages does a sole proprietorship offer?<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
4<\/span>. <\/span>What are major disadvantages of a sole proprietorship?<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
5<\/span>. <\/span>If a company wishes to limit the liability of some of its investing partners, what form of business might it consider? Explain briefly.<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
6<\/span>. <\/span>In order to form a corporation, what is the most important document required?<\/span><\/div>\n<\/div>\n<\/section>\n
\n
\n
<\/div>\n
7<\/span>. <\/span>What is the difference between a shareholder and a stakeholder?<\/span><\/div>\n<\/div>\n<\/section>\n
\n
\n
<\/div>\n
8<\/span>. <\/span>What group within a corporation has the primary responsibility for protecting the interests of shareholders?<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
9<\/span>. <\/span>What is corporate governance?<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
10<\/span>. <\/span>What role does a corporation\u2019s board of directors play in corporate governance?<\/span><\/div>\n<\/div>\n
\n
<\/div>\n
11<\/span>. <\/span>Briefly explain the concept of corporate governance.<\/span><\/div>\n<\/div>\n<\/section>\n
\n
\n
<\/div>\n
12<\/span>. <\/span>What is the key component of agency theory, and why might this be more important to a public company than to one that is privately held?<\/span><\/div>\n<\/div>\n<\/section>\n
<\/div>\n
<\/div>\n
\n

Attribution:<\/strong><\/p>\n

This chapter is from \u201cPrinciples of Finance\u201d \u00a0https:\/\/openstax.org\/books\/principles-finance\/pages\/1-why-it-matters<\/a> by Dahlquist and Knight. This book is licensed under the CC-BY<\/a> 4.0 license. 2022 OpenStax.<\/p>\n<\/div>\n","protected":false},"author":101,"menu_order":17,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-987","chapter","type-chapter","status-publish","hentry"],"part":46,"_links":{"self":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/users\/101"}],"version-history":[{"count":2,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/987\/revisions"}],"predecessor-version":[{"id":1320,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/987\/revisions\/1320"}],"part":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/parts\/46"}],"metadata":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapters\/987\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/media?parent=987"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/pressbooks\/v2\/chapter-type?post=987"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/contributor?post=987"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.ccconline.org\/ppscacc2010principlesoffinance\/wp-json\/wp\/v2\/license?post=987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}