Without the stockholders' limited liability, the risk from the use of leverage would:
A. still be the same.
B. be significantly greater.
C. be significantly less.
D. be irrelevant.
Answer: B
You might also like to view...
The table below shows data regarding Germany's labor market
Year Labor Force (millions) Number of Employed (millions) Population (millions) 2006 43.7 39.01 82.3 2007 43.7 39.06 82.2 2008 43.6 39.8 82.1 The data show that Germany's unemployment rate between 2007 and 2008 A) increased. B) decreased C) stayed the same. D) cannot be determined because the population decreased.
If the Consumer Price Index was 165 in one year and 175 in the next year, then the rate of inflation from one year to the next was approximately:
a. 4.3 percent b. 5.7 percent c. 7.5 percent d. 6.1 percent
The judicial doctrine, being a monopoly or attempting to monopolize is not in itself illegal; to be illegal, an action had to be shown to have negative economic effects, is called:
a. the "big is bad" policy. b. the per se rule. c. predatory price-cutting policy. d. the rule of law. e. the rule of reason.
In the years immediately after the American Revolution
A. both labor and capital were scarce. B. neither labor nor capital were scarce. C. labor was scarce and capital was plentiful. D. capital was scarce and labor was plentiful.