Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability

Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations. Sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. Alfredo will be involved as an active consultant and manager and will also contribute funds. Sam and Alfredo are willing to accept liability for the firm's debts as they feel they have nothing to lose by doing so. All three individuals will share in the firm's profits and wish to keep the initial organizational costs of the business to a minimum. Which form of business entity should these individuals adopt?    A.  sole proprietorship B.  joint stock company C.  limited partnership D.  general partnership E.  corporation Refer to section 1.2

36.

Sally and Alicia currently are general partners in a business located in Atlanta, Georgia. They are content with their current tax situation but are both very uncomfortable with the unlimited liability to which they are each subjected. Which form of business entity should they consider to replace their general partnership assuming they wish to remain the only two owners of their business? Whichever organization they select, they wish to be treated equally.    A.  sole proprietorship B.  joint stock company C.  limited partnership D.  limited liability company E.  corporation Refer to section 1.2

37.

Which one of the following best states the primary goal of financial management?    A.  maximize current dividends per share B.  maximize the current value per share C.  increase cash flow and avoid financial distress D.  minimize operational costs while maximizing firm efficiency E.  maintain steady growth while increasing current profits Refer to section 1.3