What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?
ACapitalized cost method
BPresent worth method
CAnnual cost method
DMARR
ESAS · Question Bank
Engineering Economics
208 of 208 questions match · page 5 of 11. Answer in your head first, then check the solution.
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?
AAnnual cost method
BBenefit-cost ratio
CRate of return method
DEUAC
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected?
AOpportunity cost
BGhost cost
CHorizon cost
DNull cost
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?
AUnstable economy
BRate of interest cannot be exactly determined
CThe initial depreciation is high
DThe initial depreciation is low
What is the factor name of the formula (1+i)^-n ?
AUniform gradient future worth
BCapital recovery
CSingle payment present worth
DSingle payment compound worth
What is the factor name of the formula [ i(1+i)^n ] / [(1+i)^n - 1] ?
AUniform series sinking fund
BCapital recovery
CSingle payment present worth
DUniform gradient future worth
Is an artificial being created by operation of law, having the right of succession and the process, attributes, and properties expressly authorized by the law or incident to its existence
ACorporation
BProperty
CPartnership
DOrganization
What is the simplest form of business organization?
ASole proprietorship
BPartnership
CEnterprise
DCorporation
Double taxation is a disadvantage of which business organization?
ASole proprietorship
BPartnership
CCorporation
DEnterprise
In case of bankruptancy of a partnership,
Athe partners are not liable for the liabilities of the partnership
Bthe partnership assets (excluding the partners personal assets) only will be used to pay the liabilities
Cthe partners personal assets are attached to the debt of the partnership
Dthe partners may sell stock to generate additional capital
Which is true about partnership?
AIt has perpetual life
BIt will be dissolved if one of the partners ceases to be connected to the partnership
CIt can be handled down from one generation of partners to another
DIts capitalization must be equal for each partner
Which is true about corporation?
AIt is worse type of business organization
BThe minimum number of incorporators to start is three
CIts life is dependent on the lives of the incorporators
DThe stockholders of the corporation are only liable to the extent of their investments
An aggregation of individuals formed for the purpose of conducting a business and recognized by law as a fictitious person is called _________
Apartnership
Binvestors
Ccorporation
Dstockholders
An association of two or more persons for the purpose of engaging into a business for profit is called _______
Aentrepreneurship
Bpartnership
Cproprietorship
Dcorporation
What represents the ownership of stockholders who have a residual claim on the assets of the corporation after all other claims have been settled?
AAuthorized capital stock
BPreferred stock
CIncorporator stock
DCommon stock
What stock represents ownership and enjoys certain preferences than ordinary stock?
AAuthorized stock
BPreferred stock
CIncorporator's stock
DPresidential stock
The amount of company's profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ________
Adividend
Breturn
Cshare of stock
Dequity
What refers to the residual value of a company's assets after all outside liabilities (shareholders excluded) have been allowed for?
ADividend
BEquity
CReturn
DPar value
What refers to the claim of anyone to ownership?
AProprietorship
BAssets
CEquity
DLiability
Cash money and credit necessary to establish and operate an enterprise are generally called _________
Acapital
Bfunds
Cassets
Dliabilities