Fran and Bob Smithers (Wife and Husband) Own and Manage

question 3

Multiple Choice

Fran and Bob Smithers (wife and husband) own and manage a cleaning service. A potential advantage of this arrangement is that

• A) differences of opinion about the business won't carry over into family lives.
• B) it affords the opportunity to share more of their lives.
• C) the business isn't likely to dissipate their energies.
• D) they can count on working fewer hours in the business.

---

Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the issuing company, reducing the amount of outstanding stock.

Common Stock

A form of investment indicating partial ownership in a company, granting the holder the right to vote and possibly receive dividends.

Stockholders' Equity

The leftover value in a corporation's assets after all obligations are removed, symbolizing the equity held by shareholders.

Par Value

The stated value of a bond, stock share, or coupon as declared by the issuer.