A corporation may be reluctant to raise capital by issuing stock because
a. issuing stock to obtain money for investment is riskier than selling bonds.
b. holders of already-existing stock will gain more voting power in the corporation.
c. obtaining government permission to issue stock can be time-consuming and expensive.
d. All of the above are correct.
c
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Depository institutions undertake all the following activities EXCEPT they do not ________
A) print money B) minimize the cost of monitoring borrowers C) pool risk D) create liquidity
Which of the following is true for a monopolist?
a. The firm has a perfectly elastic demand curve. b. The firm has a perfectly inelastic demand curve. c. The straight-line demand curve is above the marginal revenue curve. d. The marginal revenue curve is above the demand curve. e. All of these.
Corporations obtain funds when their previously issued stock is traded
a. True b. False Indicate whether the statement is true or false
Externalities can be positive or negative. An example of a positive externality is the third-party benefits from solar energy production such as reduced emissions, cleaner air, and the "warm glow" some people experience from engaging in sustainable activities. An example of a negative externality is the emissions produced from driving gasoline powered motor vehicles such. These emissions have been shown to adversely effect the environment, agriculture, and human productivity, morbidity, and mortality. Which of the following policies would NOT incentivize consumers or producers to internalize external costs of the activities they engage in?
a. Driving subsidies to automobile drivers. b. Production subsidies to manufacturers of solar energy equipment such as photovoltaic cells and batteries. c. Driving taxes to automobile drivers. d. Consumption subsidies to buyers of solar energy equipment such as photovoltaic cells and batteries. e. None of the above.