In the context of legal forms of business, a Subchapter S Corporation
A. allows the owners to treat the income of the firm as part of their personal incomes.
B. treats the owners of the firm as advisory members with little say in the operations of the firm.
C. gives the owners of the firm virtually unlimited liability for its debts and liabilities.
D. treats the owners of the firm and the firm itself as the same entity.
Answer: A
You might also like to view...
A normal probability distribution
A. is a continuous probability distribution. B. is a discrete probability distribution. C. can be either continuous or discrete. D. must have a standard deviation of 1.
On the continuum of long- versus short-term orientation, where does the United States score?
a. long-term *b. short-term c. medium-term d. extreme short-term
The value of a convertible bond is relatively insensitive to changes in the riskiness of the firm, because the value of the underlying bond is inversely related to changes in the firm's risk, while the value of the implicit call option is directly
related to changes in the firm's risk. Consequently, with a convertible bond the firm's management no longer has an incentive to engage in to expropriate value from the bondholders, and therefore one of the major agency problems associated with debt is resolved. a. excessive consumption of perquisites. b. risk shifting. c. excessive dividend payments. d. excessively conservative investment policies.
Human resource (HR) managers cannurture human investment so that it yields the highest possible returnby _____.
A. promoting career development B. recruiting employees for low wages C. providing the same compensation to all employees D. satisfying all demands of trade unions