11. Steve’s Bicycle Repair Shop, Inc., has $150,000 in assets (tools, refurbished bikes, parts). Owners’ equity is the full $150,000. Now Steve wants to borrow $10,000 in order to stock new bikes. This will add to the equity in the company,
12. A bank’s most important asset is its deposits.
13. The only way for a company to increase its book value is through retained earnings.
14. The Beneficiaries in a Trust control the assets in the Trust
15. A company cannot pay dividends in excess of its net profits after taxes.
16. A Holding Company “holds” only assets; it has no equity or (other) liabilities.
17. A sole proprietor has generated $100,000 in profits. After she pays $20,000 tax on these profits she must then pay income taxes on the $80.000 remaining.
18. Banks borrow from/lend to each other in the inter-bank market.. Get Finance homework help