Limited liability rules:
A. mean that bankrupt companies owe nothing to corporate bondholders.
B. discourage investment in corporate stock.
C. help prevent corporate fraud.
D. encourage stock investing by limiting shareholder risk of loss.
D. encourage stock investing by limiting shareholder risk of loss.
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Economists generally believe that
a. buyers and sellers have all the information they can use b. additional information is costly to acquire c. decision makers have complete knowledge of all the alternatives available d. economic decisions result from random behavior e. decision makers never make mistakes
DeBeers is a natural monopoly in the world's diamond trade
a. True b. False
Suppose, as a result of a long-run adjustment in a perfectly competitive industry to a change in demand, price and output both fell. Therefore, demand must have __________ in this __________ industry
a. fallen; increasing cost b. fallen; decreasing cost c. increased; increasing cost d. increased; decreasing costs e. decreased; constant cost
If the nominal exchange rate were to be expressed as the number of units of domestic currency per unit of foreign currency, and that rate decreases, then the domestic currency has:
A. appreciated. B. depreciated. C. become undervalued. D. become overvalued.