A share of common stock represents a(n):
A. claim from a lender against a borrower.
B. share of ownership of the company.
C. unlimited liability to the owner of the stock.
D. share in the company's debts.
Answer: B
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Q: How many economists does it take to screw in a light bulb?
A: None. If the light bulb really needed changing, market forces would have already caused it to happen. This joke represents the view of A) Keynesian economists. B) classical economists. C) economists who conclude that wages and prices are inflexible. D) economists who conclude that money illusion is widespread.
Explain comparative advantage
What will be an ideal response?
For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?
A) The excess burden of the tax will be greater when the demand is more elastic than when it is less elastic. B) The excess burden of the tax will be greater when the demand is less elastic than when it is more elastic. C) The excess burden of the tax will be minimized when the demand is unit elastic. D) The excess burden of the tax will be greater when the elasticity of supply is greater than the elasticity of demand.
Imputed rental income ____
a. is payment made by rental owners to facility management companies b. provides no value to the recipient c. is the dollar amount of the rental value of an owner-occupied home d. is the dollar amount of the rental value of a renter-occupied home