Which of the following statements is CORRECT?
A. A hostile takeover is the main method of transferring ownership interest in a corporation.
B. A corporation is a legal entity created by a state, and it has a life and existence that is separate from the lives and existence of its owners and managers.
C. Unlimited liability and limited life are two key advantages of the corporate form over other forms of business organization.
D. Limited liability is an advantage of the corporate form of organization to its owners (stockholders), but corporations have more trouble raising money in financial markets because of the complexity of this form of organization.
E. Although the stockholders of the corporation are insulated by limited legal liability, the legal status of the corporation does not protect the firm's managers in the same way, i.e., bondholders can sue the firm's managers if the firm defaults on its debt.
Answer: B
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________ is the ability to gain, store, and retain information in the brain for later application.
A. Memory B. Comprehension C. Response D. Recognition
Favre Company reports depreciation expense of $51,000 for Year 2. Also, equipment costing $173,000 was sold for a $11,100 loss in Year 2. The following selected information is available for Favre Company from its comparative balance sheet. Compute the cash received from the sale of the equipment. At December 31Year 2Year 1Equipment$665,000? $838,000? Accumulated Depreciation-Equipment 472,000? 555,000?
A. $39,000. B. $51,000. C. $50,100. D. $27,900. E. $71,900.
It is important to follow this advice: “If the time is short, don’t talk faster. Talk ______.”
Fill in the blank(s) with the appropriate word(s).
The process of planning for smooth transitions when key employees depart or get promoted in order to minimize disruption of the organization’s work is called ______.
A. succession planning B. turnover planning C. absenteeism D. voluntary turnover