Compared to a proprietorship, a disadvantage of a partnership is
A) that profits are taxed twice.
B) that it is harder to keep the firm going after the death of an owner.
C) unlimited liability.
D) that potential liability to each partner is greater.
D
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Which of the following is NOT included in the M1 measure of money but is included in the M2 measure of money?
A) currency B) traveler's checks C) demand deposits D) small-denomination time deposits
Compared with other bonds, convertible bonds usually have
A) less liquidity. B) a higher price. C) a higher yield. D) low tax payments.
Refer to Scenario 9.2 below to answer the question(s) that follow. SCENARIO 9.2: Tom borrowed $40,000 from his parents to open a donut stand. He agrees to pay his parents a 5% yearly return on the money they lent him. His other yearly fixed costs equal $10,000. His variable costs equal $25,000. He sold 40,000 dozen donuts during the year at a price of $2.00 per dozen.Refer to Scenario 9.2. Tom's profit is
A. $0. B. $26,000. C. $30,000. D. $43,000.
If the U.S. dollar depreciates relative to the euro, then:
A. American goods will be more expensive for Germans B. German goods will be less expensive for Americans C. The euro will appreciate relative to the dollar D. The euro will depreciate relative to the dollar