Which of the following statements is correct?
a. The expected future profitability of a corporation influences the demand for that corporation's stock.
b. When a corporation sells stock as a means of raising funds it is engaging in debt finance.
c. The owners of bonds sold by the Microsoft Corporation are part owners of that corporation.
d. All bonds are, by definition, perpetuities.
a
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Managers' pursuit of which of the following objectives would NOT lead to a principal-agent problem in a corporation?
A) The corporation's growth B) Increased market share for the corporation C) The maximum possible profit for the corporation D) A great "golden parachute" or retirement package E) Increased current salary and fringe benefits
Job candidates during a job search will seek to provide employers with ________ but avoid providing ________:
A. positive signals; negative signals. B. negative signals; positive signals. C. truthful information; false information. D. as much information as possible; private information.
In the aggregate demand-aggregate supply model in the short run, a decrease in the money supply is likely to cause a(n): a. increase in both the price level and real GDP
b. decrease in both the price level and real GDP. c. increase in real GDP and a decrease in the price level. d. decrease in real GDP and an increase in the price level. e. increase in the price level only.
If a flat tax plan allowed individuals to deduct a standard allowance of $20,000 and the flat tax rate was 20 percent, an individual earning $100,000 would pay an average tax rate of 20%
a. True b. False Indicate whether the statement is true or false