Before its IPO, Facebook was an example of a private firm. As a private firm, Facebook was
A) not subject to government regulations and taxation.
B) run by stockholders and a board of directors.
C) run by its founder, Mark Zuckerberg.
D) not legally allowed to raise funds through venture capital firms.
Answer: C
You might also like to view...
The minimum efficient scale of a firm:
A. is the smallest level of output at which long-run average total cost is minimized. B. is in the middle of the range of constant returns to scale. C. occurs where marginal product becomes zero. D. is realized somewhere in the range of diseconomies of scale.
Which of the following is TRUE of M2?
A. It excludes savings deposits. B. It does not include highly liquid components of the money supply. C. It includes credit limits for credit card transactions. D. It is larger than M1.
Answer the following questions true (T) or false (F)
1. Unemployment caused by a business cycle recession is called cyclical unemployment. 2. The natural rate of unemployment consists of frictional unemployment plus structural unemployment. 3. The natural rate of unemployment consists of frictional unemployment plus cyclical unemployment.
You took out a loan one year ago at a nominal interest rate of 7.5%. The CPI stood at 173.2 at the time and you expected it to rise to 178.6 over the year. Today the CPI is actually 179.5. Calculate the expected real interest rate on the loan and the real interest rate on the loan.
What will be an ideal response?