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How Much You Know About Corporate Finance? Quiz

Question 1 of 3

Q1 . The shareholders elect ___ to protect their interest in a corporation.

Q2 . Which legal form of business is best suited for an expanding business that is likely to need large amounts of funding?

Q3 . The owners of a corporation can best be described as the ___ of the corporation.

Q4 . Which most accurately describes an inside director of a corporation?

Q5 . Investors invest in stocks of companies that do not pay dividends because

Q6 . Your friend is concerned that if she organizes her business as a corporation, she will have to share ownership of it with other shareholders and therefore give up control of her business. What should your friend know?

Q7 . In a typical large public corporation, who manages the company on a day to day basis?

Q8 . A shareholder wishes to sell shares to another investor. She should know that shares of stock in a corporation.

Q9 . In a typical corporation, for which function(s) is the CFO usually is responsible?

Q10 . Owners of sole proprietorships are taxed at a rate of 30% on the profits of their businesses. Corporations are taxed at 21% of their profits. Dividends are taxed at a rate of 15%. If a business earns a profit of $300,000 for the year. If a business is organized as a corporation and pays out the maximum dividend it can pay, from the year's profits, how much of the dividend is available to the stockholders after all taxes are paid?