The Advantage of a Corporation Over a Partnership Is

question 39

Multiple Choice

The advantage of a corporation over a partnership is:

• A) shares are easily transferable to another person.
• B) perpetual existence.
• C) it is easier to raise funds.
• D) All the above.

Learn the effects of environmental factors on float management.

Understand the calculations involved in determining net float and the implications for cash management.

Understand methods to decrease a firm’s collection time.

Recognize the best cash management practices for firms with multiple offices and national customers.

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Definitions:

Residual Value

is the estimated amount that an entity would currently obtain from disposing of the asset, after deducting the estimated costs of disposal, at the end of its useful life.

Asset's Economic Life

The period over which an asset is expected to be economically useful to the owner.

Inception Date

The date on which an agreement, policy, or financial instrument becomes effective or is entered into.

Fair Value

A projected price for an asset or liability that could be transferred between agreeable, well-informed participants in a transaction that is free from any special relationship.