Which of the following is a disadvantage of the corporate form of business organization?

A) limited liability
B) limited financing
C) double taxation
D) unlimited liability


Answer: C

Economics

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The process by which investment banks guarantee a certain price to a firm issuing stocks or bonds is known as:

A) underwriting B) securitization C) proprietary trading D) microlending

Economics

Capital per person k is higher in Japan than in the United States. As a result ________

A) per capita income is higher in Japan B) total factor productivity is higher in Japan C) the marginal product of capital is higher in Japan D) all of the above E) none of the above

Economics

The above figure shows a graph of the market for pizzas in a large town. Suppose that concern over dietary habits has led the government to impose a restriction that limits suppliers to produce only 40 pizzas

As a result, for prices greater than $7, the A) supply curve is unchanged. B) supply curve is vertical. C) demand curve becomes vertical. D) demand curve becomes horizontal.

Economics

The following is an example of risk aversion

a. those applying for a well-paid job tend to be the most qualified b. more reckless drivers opt for cars with more safety devices c. the contractor with the lowest bid for a is the most qualified d. Initial Public Offerings (IPOs) seek investors when prospects look good

Economics