Which of the Following Statements Is CORRECT

question 35

Multiple Choice

Which of the following statements is CORRECT?

• A) In a regular partnership, liability for other partners' misdeeds is limited to the amount of a particular partner's investment in the
• Business.
• B) Partnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability, the need to reorganize when a partner dies, and the illiquidity (difficulty buying and selling) of partnership interests.
• C) A slow-growth company, with little need for new capital, would be more likely to organize as a corporation than would a faster growing company.
• D) In a limited partnership, the limited partners have voting control, while the general partner has operating control over the business. Also, the limited partners are individually responsible, on a pro rata basis, for the firm's debts in the event of bankruptcy.
• E) A major disadvantage of all partnerships relative to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself.

Identify how p-values are used in hypothesis decision making.

Learn the concept of alternative and null hypotheses in statistical tests.

Understand the relationship between significance level, p-value, and statistical significance.

Recognize that accepting and failing to reject the null hypothesis are equivalent decisions.

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Definitions:

NPV

Net Present Value; a method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover its initial cost.

Present Values

Present Values represent the current value of a future amount of money or stream of cash flows given a specified rate of return.

Capital Projects

Long-term investment projects undertaken by a business or organization to build, add, or improve on their capital assets.