Which of the following is NOT an ADVANTAGE of a sole proprietorship?

a. The owner receiving all the after-tax profit. b. All are advantages of a sole proprietorship. c. none d. Limited liability e. Quick decision making

Which of the following statements is false regarding profitable and unprofitable growth?

A) None. B) If the firm retains more earnings, it will be able to pay out less of those earnings, which means that the firm will have to reduce its dividend. C) Cutting the firm's dividend to increase investment will raise the stock price if, and only if, the new investments have a positive NPV. D) If a firm wants to increase its share price, it must cut its dividend and invest more. E) A firm can increase its growth rate by retaining more of its earnings.

Stocks differ from bonds because:

A) firms pay bond cash flows prior to paying taxes while stock cash flows are after tax. B) bond cash flows are known while stock cash flows are uncertain. C) none D) the ending par value of a bond is known at purchase while the ending value of a share of stock is unknown at purchase. E) All