Which of the following is true?
a. Most stockholders own stock because they want to participate in the daily decision making of the firms that they own.
b. The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future.
c. The potential losses of shareholders are limited to the amount of their investment.
d. Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
C
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According to classical economists,
a. prices are rigid. b. both V and Q are variable for an economy in short-run equilibrium. c. changes in M cause changes in V. d. the velocity of money is constant.
Explain how compensating differentials could contribute to differences between the average wages of men and women
An individual bank can create deposits to the extent of its
A. excess reserves. B. required reserves. C. total reserves. D. deposits.
Suppose there are only two goods (Good A and Good B) and the average person buys 4 of Good A in a year and 3 of Good B. If, in the base year, the Price of Good A is $5 and the Price of Good B is $10, and in the next year the Price of Good A is $6 and the Price of Good B is $9, the inflation that occurred in the second year is
A. 51%. B. 1%. C. 100%. D. 2%.