What is the primary reason for forming a corporation when starting a business?

Investment Strategies and Financial Concepts

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Business
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9th - 12th Grade
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Hard

Emma Peterson
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10 questions
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1.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
To raise capital from investors
To ensure product quality
To avoid paying taxes
To hire more employees
2.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why might a business choose to borrow money instead of issuing more stock?
To reduce interest payments
To simplify accounting
To maintain a larger share of ownership
To increase the number of shareholders
3.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What does a balance sheet primarily show?
The company's assets, liabilities, and equity
The company's employee satisfaction
The company's future projections
The company's marketing strategy
4.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is the significance of EBIT in an income statement?
It indicates the company's tax obligations
It represents earnings before interest and taxes
It shows the company's total revenue
It measures the company's goodwill
5.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
How can a business increase its shareholder equity over time?
By increasing its liabilities
By issuing more debt
By generating consistent profits
By reducing its fixed assets
6.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
What is a key difference between debt and equity?
Debt holders have a residual claim on assets
Equity holders receive fixed interest payments
Debt is considered a safer investment
Equity is repaid before debt in case of liquidation
7.
MULTIPLE CHOICE QUESTION
30 sec • 1 pt
Why might an investor choose to invest in government bonds?
For quick liquidity
For tax benefits
For lower risk compared to other investments
For higher returns compared to stocks
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