What are the distinguishing features of a stock? What happens to stockholders if the corporation fails?
What will be an ideal response?
A stock represents an ownership share in a corporation and entitles the purchaser to voting rights at shareholder meetings and a share of profit distributions. A stockholder’s investment in the corporation does not guarantee them a repayment of their investment should the company fail. Rather, should the company fail, their assets must first be auctioned off to repay their debts, and only after those are repaid do the shareholders receive a portion of the remains. However, should a company owe more than its assets, shareholders are protected by limited liability and only lose the amount of money they invested. Investors gain through stocks by capital gains, or earnings made by the appreciation of stock, and through dividends.
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Which of the following pairs of goods is likely to be considered complements?
A) Nokia and Samsung cell phones B) Laptops and electric heaters C) Motorcycles and typewriters D) Pens and writing pads
The maximum contaminant level (MCL) for a drinking water contaminant
a. is not enforceable b. is set using benefit-cost analysis since the enactment of the 1996 SDWA amendments c. is solely benefit based like the maximum contaminant level goals (MCLGs) d. is set to maximize the total social benefits (TSB) of abating that contaminant
Suppose a market is initially competitive with many firms selling an identical product. Over time, however, suppose the merging of firms results in the market being served by only three or four firms selling this same product. As a result, we would expect
a. an increase in market output and an increase in the price of the product. b. an increase in market output and an decrease in the price of the product. c. a decrease in market output and an increase in the price of the product. d. a decrease in market output and a decrease in the price of the product.
Which of the following is a lesson from the Condorcet paradox?
a. If voters are choosing a point along a line, then majority rule will pick the most preferred point of the median voter. b. Under certain conditions, there is no scheme for aggregating individual preferences. c. When there are more than two options, deciding the order in which to vote can have a powerful influence over the outcome of an election. d. Majority voting always indicates what outcome a society really wants.