All of the following statements about corporations are true except
A) they are chartered by the state.
B) ownership is represented by shares of stock.
C) the sale of stock does not dissolve the business.
D) the stockholders have direct control of the business.
D
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The Securities Act of 1933 has two basic objectives, one of which is to:
a. extend protection to investors trading in outstanding, issued securities. b. grant the SEC power to impose administrative, civil penalties up to $600,000. c. regulate disclosure requirements on publicly held corporations. d. prohibit misrepresentation, deceit, and other fraudulent acts and unfair practices in the sale of securities generally, whether or not they are required to be registered.
The incentives for self-policing, disclosure, correction, and prevention provides lesser penalties and sanctions: A)?For first-time violators
B)?For violators who came forward voluntarily. C)?For whistleblowers who report their own companies. D)?None of the above
A bear market can be revealed by tracking ________, which is a summary of overall price trends
A) the Dow Jones Industrial Average B) market indexes C) the value of blue-chip stocks D) technology-based economies E) exchange-traded funds
Answer the following statements true (T) or false (F)
1. The overriding objective of the capital structure decision should be to choose the level of debt that results in the largest possible share price. 2. Firms having stable and predictable revenues can more safely employ highly leveraged capital structures than can firms with volatile patterns of sales revenue. 3. Payout policy refers to the decisions that firms make about whether to distribute cash to shareholders, how much cash to distribute, and by what means the cash should be distributed. 4. Rapidly growing firms pay high dividends to shareholders. 5. Dividends are the only means by which firms can distribute cash to shareholders.