A widely held corporation is one in which:
A. the dominant blockholder controls 40% of the shares.
B. each blockholder controls exactly 25% of the shares.
C. none of the owners control more than 5% of the shares.
D. none of the owners control more than 10% of the shares.
Answer: D
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In the expansion phase of a business cycle
A. the inflation rate and productive capacity decrease. B. employment increases, but output decreases. C. the inflation rate decreases, but productive capacity increases. D. employment and output increase.
The position of a demand curve is unaffected by changes in the price of the good.
Answer the following statement true (T) or false (F)
Suppose a country has no trade with other countries and people can borrow as many funds as they want at the current interest rate. An increase in the price level will generate
A) a decrease in total planned real expenditures because of the real-balance effect. B) a decrease in total planned real expenditures because the indirect effect will be stronger than the real-balance effect. C) a decrease in total planned real expenditures because the real-balance effect will be stronger than the indirect effect and the open-economy effect. D) a decrease in total planned real expenditures because of the open-economy effect and the indirect effect.
The industry represented by the graph above where S1 and S2 are short-run supply curves, D1 and D2 are short-run demand curves, and LRS is the long-run supply curve can be said to be:
A. an increasing-cost industry. B. an average-cost industry. C. a decreasing-cost industry. D. a constant-cost industry.