Week 16 MCQ MOCK Test

Question 1

1. A corporation:
   I. is a separate legal entity.
   II. becomes a “resident” of the state in which it is incorporated.
   III. can own property and borrow money.
   IV. has its business purpose and intended life spelled out in its bylaws.
   A. I, III, and IV only
   B. I and II only
   C. III and IV only
   D. I, II, and III only
   E. I, II, III, and IV

Answer 1

D. I, II, and III only

Question 2

2. A credit card has an annual rate of 14.9 percent and charges interest monthly. The
   effective annual rate on this account:
   A. will be greater than 14.9 percent
   B. will equal 14.9 percent
   C. will be less than 14.9 percent
   D. can either be less than or equal to 14.9 percent
   E. can either be greater than or equal to 14.9 percent

Answer 2

A. will be greater than 14.9 percent