Companies issue stock because of all of the following except:
A. it allows the owners to raise capital without having to borrow.
B. it allows the owners to share the risk of failure.
C. it allows the owners to turn an illiquid asset into a liquid one.
D. it allows companies to file bankruptcy.
D. it allows companies to file bankruptcy.
You might also like to view...
Which of the following examples best describes the Law of Demand?
A) When John's income doubles, his telephone bill also doubles. B) When the price of bread doubles, John's consumption of bread halves. C) When the price of watches increases, a local manufacturer starts offering more watches for sale. D) When a new anti-tobacco commercial is released, the consumption of tobacco products decreases sharply.
When national output declines, the economy is said to be in
A) an expansion. B) a deflation. C) an inflation. D) a recession.
Beginning from a position of long-run equilibrium at the full-employment level of real GDP, the economy's short-run response to an increase in the aggregate demand curve would be:
a. a movement upward along the short-run aggregate supply curve. b. a movement upward along the long-run aggregate supply curve c. a downward shift in the short-run aggregate supply curve. d. a shift in both the aggregate demand curve and the short-run aggregate supply curve with a movement along the long-run aggregate supply curve. e. no change, since the economy is already in equilibrium.
A perfectly competitive firm is a: a. price giver
b. price taker. c. price maker. d. price leader.