A stockholder owning 5 percent of a company's stock:
A. is guaranteed to receive 5 percent of the company's yearly profits.
B. is personally responsible for 5 percent of the debts if the company goes bankrupt.
C. has 5 percent of her personal assets vulnerable if the company goes bankrupt.
D. gets 5 percent of the votes at the shareholders' meetings.
D. gets 5 percent of the votes at the shareholders' meetings.
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What is the difference between decreasing marginal returns and negative marginal returns?
What will be an ideal response?
In a monopolistically competitive market there are
A) many firms. B) one firm. C) a very small number of firms. D) two firms.
Suppose there are two economies that are identical in every way with the following exception. Economy A has an unemployment compensation system while economy B does NOT have an unemployment compensation system. Now suppose both economies experience the same drop in planned investment. Which of the following is correct?
A. Real GDP will fall more in economy A than in economy B. B. Real GDP will fall the same in both economies. C. Real GDP will fall more in economy B than in economy A. D. The effect on the relative size of the reduction in real GDP in the two economies is ambiguous.
If the marginal propensity to consume is .9, then the marginal propensity to save must be:
A. 1. B. .1. C. 1.1. D. .9.