Describe and explain the three principle methods of financing used by corporations
What will be an ideal response?
Corporations raise funds by selling stocks, selling bonds, and reinvesting profits. A share of stock is a form of ownership in the firm and entitles the owner to a share of future profits. A person who buys a bond from a firm is lending the firm money. Finally, if the firm earns profits, it can use some of them for investment rather than pay them all out to stockholders as dividends.
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Refer to Figure 12-5. If the market price is $20, what is the firm's profit-maximizing output?
A) 750 units B) 1,100 units C) 1,350 units D) 1,800 units
The Phillips curve represents a direct relationship between the inflation rate and the unemployment rate
a. True b. False Indicate whether the statement is true or false
The Clayton Act of 1914:
A. prohibited selling products at "unreasonably low prices" with the intent of reducing competition. B. made it illegal to monopolize a market. C. repealed the Sherman Act. D. outlawed price discrimination for the purpose of reducing competition.
Use the following saving schedule to answer the next question. 
As income falls from level 3 to level 2, the amount of
A. dissaving increases. B. saving increases. C. dissaving decreases. D. saving decreases.