Which of the following statements is false?
A) Private equity firms often need to borrow the money needed to buy a public corporation.
B) Once a private equity firm owns a formerly publicly held corporation, they tend to cut costs and enhance efficiency.
C) Critics of private equity firms say that companies that have too much cash and too little debt become targets for private equity firms to buy.
D) A private equity firm is a group of investors that takes a privately held corporation and uses an investment banker to turn it into a publicly held corporation.
D
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Macroeconomics is distinguished from microeconomics by its concentration on
A. choices. B. the performance of national economies and ways to improve upon their performance. C. individual markets. D. the level of prices in specific markets.
An individual deposits $12,000 in a commercial bank. The bank is required to hold 10 percent of all deposits on reserve at the regional Federal Reserve Bank. The deposit increases the loan capacity of the bank by:
A. $9,600. B. $11,000. C. $6,000. D. $10,800.
When the price of home delivered pizza falls, the demand Question 5 options:
A. for frozen pizza decreases. B. curve for home delivered pizza shifts leftward. C. curve for frozen pizza shifts rightward. D. for frozen pizza increases.
Suppose buyers in the used car market are willing to pay $5,000 for a plum (high-quality) used car and $2,500 for a lemon (low-quality) used car. If buyers believe that 50% of the used cars on the market are lemons (low quality), what would they be willing to pay for a used car?
A. $2500 B. $3000 C. $3750 D. $5000