Answered step by step
Verified Expert Solution
Question
1 Approved Answer
7.) Which of the following statements is CORRECT? A) One of the disadvantages of incorporating your business is that you could become subject to the
7.) Which of the following statements is CORRECT? A) One of the disadvantages of incorporating your business is that you could become subject to the firm's liabilities in the event of bankruptcy. B) Proprietorships are subject to more regulations than corporations. C) Corporations of all types are subject to corporate income tax. D) Proprietorships and partnerships generally have a tax advantage over corporations. 8.) Which of the following statements is CORRECT? A) One of the ways in which firms can mitigate or reduce potential conflicts between bondholders and stockholders is by increasing the amount of debt in the firm's capital structure. B) The threat of a takeover generally increases potential conflicts between stockholders and managers. C) The creation of the Securities and Exchange Commission (SEC) has eliminated conflicts between managers and stockholders. D) The threat of takeovers tends to reduce potential conflicts between stockholders and managers. E) Managerial compensation plans cannot be used to reduce potential conflicts between stockholders and managers. 9.) Which of the following is likely to happen when the Fed LOWERS interest rates? A) The cost of borrowing will increase. B) Unemployment will rise in the short term. C) Inflation will slow. D) Economic growth will slow. E) None of these are likely to happen
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started