Suppose a firm wanted to go out of business. The firm sells all its assets and pays off everything it owes to creditors. The stockholders would receive
A. one half of the funds; the other half of the funds goes to bondholders.
B. the rest of the funds, after everyone who has a claim against the firm is paid.
C. nothing.
D. their annual dividend payment.
Answer: B
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What factors of production can a firm change in the short run? In the long run?
What will be an ideal response?
Poor countries grow faster than rich countries because of rapid growth in the labor force
a. True b. False Indicate whether the statement is true or false
A currency revaluation is a(n):
A. reduction in the official value of a currency in a fixed-exchange-rate system. B. decrease in the value of a currency relative to other currencies. C. increase in the value of a currency relative to other currencies. D. increase in the official value of a currency in a fixed-exchange-rate system.
The theory of the kinked demand curve is that
a. although the firm sells a differentiated product, too many competitors exist to make it worthwhile speculating on responses to the firm's behavior. b. freedom of entry will reduce profits to zero. c. a firm's competitors will follow it in a price decrease but not follow it in a price increase. d. firms are all seeking the position of joint profit maximization.