Why is it that only a small percentage of American firms are incorporated?
a. Corporate debt as stockholder's liability.
b. Small size of firms.
c. Unlimited liability.
d. Inability to outlast associated individuals.
b
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The interest rate is the price borrowers pay to borrow money. Key interest rates are controlled by the Federal Reserve System. If the Federal Reserve acts to reduce interest rates, economists would expect the quantity of money supplied to
A. increase. B. decrease. C. not change. D. Uncertain-economic theory has no answer to this question.
According to the text, Ireland and Israel are classified as industrially advanced countries (IACs)
a. True b. False Indicate whether the statement is true or false
To eliminate an AD shortfall of $100 billion when the economy has an MPC of 0.80, the government should increase transfer payments by
A. $80 billion. B. $100 billion. C. $20 billion. D. $25 billion.
In the early 2000s, the government passed laws requiring banks and mortgage brokers to disclose the terms of home loans. This action by the government was an attempt to:
A. screen out risky or shady banks and mortgage brokers. B. solve the information asymmetry problem and led to an improvement in the housing market. C. signal to consumers that the government cared about the value of their homes. D. solve the information asymmetry problem, but did not work as intended.