Which of the following transactions will lower a company's financial leverage?
A) A mortgage loan is obtained and the proceeds are used to pay off existing short-term debt.
B) Preferred stock is sold and the proceeds are used to pay off existing short-term debt.
C) Short-term debt is obtained to get the company through a period of negative net income and
cash flow.
D) Common stock is sold and the proceeds are used to pay off existing short-term debt.
D
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The primary purpose of the Constitutional Convention of 1787 was to limit the power of the federal government of America and restrict it from levying or collecting taxes
Indicate whether the statement is true or false
The purpose of copyright law is to
A. level the playing field between inventors who work for large corporations and those who work on their own. B. give an author of a literary, dramatic, musical, or artistic work the exclusive right to print, perform, or otherwise copy that work. C. guarantee the quality and safety of any product produced or distributed in the United States. D. provide incentives for increased competition. E. give inventors of new and novel products the right to exclude others from making, using, or selling products that infringe the patented invention.
Which of the following is one of the reasons why many people prefer a sole proprietorship?
A. Pride of ownership B. Unlimited liability C. Permanence D. Ease of transfer of ownership
Mention some major contributions made by small businesses.
What will be an ideal response?