You paid $10,000 to buy 1% of the stock in a corporation that is now bankrupt. The company owes $10 million dollars to its creditors. As a result of the bankruptcy, you are responsible for paying $100,000 (or $10 million × 1%) of the amount owed to the creditors.
Answer the following statement true (T) or false (F)
False
Unlike sole proprietorships and partnerships, a corporation is a separate entity from both legal and accounting perspectives. This means that a corporation, not its owners, is legally responsible for its own taxes and debts.
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The advantage of using the extra dividend policy is that ________
A) a firm can avoid giving false hopes to shareholders B) if a firm's earnings drop, so does the dividend payment C) the extra dividend may become a regular event D) cyclical shifts in earnings may be avoided
Under what conditions could the law of one price be violated?
What will be an ideal response?
When the U.S. government announced that no Americans could do business with Iraq, all existing contracts became unenforceable
a. True b. False Indicate whether the statement is true or false
In constructing a confidence interval estimate for the difference between the means of two independent normally distributed populations, we:
a. pool the sample variances when the unknown population variances are equal. b. pool the sample variances when the population variances are known and equal. c. pool the sample variances when the population means are equal. d. never pool the sample variances.