The retail ownership form that has the greatest capacity for raising funds through the sale of stock is a _____
a. sole proprietorship
b. corporation
c. partnership
d. franchise
b
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The measurable quality of a country's distribution, financial, and communication systems is referred to as the country's ________
A) level of economic development B) standard of living C) gross domestic product (GDP) D) economic infrastructure E) business cycle
A corporation issues bonds that pay interest each February 1 and August 1 . The corporation's December 31 adjusting entry might include a
a. debit to Unamortized Bond Premium. b. debit to Cash. c. debit to Bond Interest Payable. d. credit to Bond Interest Income.
The weighted average cost of capital represents the
a. cost of bonds, preferred stock, and common stock divided by the three sources. b. equivalent units of capital used by the organization. c. overall cost of capital from all organization financing sources. d. overall cost of dividends plus interest paid by the organization.
Regarding employee stock options, which of the following is/are not true?
a. Firms compute a fair-value-based measure of employee stock options on the date of the grant using an option-pricing model that incorporates information about the current market price, the exercise price, the expected time between grant and exercise, the expected volatility of the stock, the expected dividends, and the risk-free interest rate. b. Total compensation cost is the number of options the firm expects to vest times the value per option. c. Firms amortize total compensation cost over the requisite service period, which is the expected period of benefit. d. The requisite service period is usually the period between the grant date and the redemption date. e. Firms do not typically remeasure most types of stock options after the initial grant date.