Quiz 1 - Quiz 1 1. Which of the following would be...

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Quiz 1 1. Which of the following would be considered an advantage of the sole proprietorship form of organization? a. Wide access to capital markets b. Unlimited liability c. A pool of expertise d. Profits taxed at only on level Answer: D 2. Which of the following statements is NOT correct: a. Agency problems arise when managers and shareholders have different objectives. b. Managers may empire-build with excessive investment and growth. c. Managers may be unduly risk averse, or they may try to take excessive salaries or perquisites. d. Agency problems may arise even when managers and shareholders have exactly the same objectives. Answer: # 3. While corporations provide shareholders returns from _________, capital markets provide returns to shareholders from ________? a. Capital gains; dividends b. Appreciation; capital gains c. Dividends; capital gain d. Earnings; capital appreciation Answer: C 4. The first time a security is sold it is in the ________ market; subsequently trading of the security is in the _______ market. a. Money; capital b. Capital; money c. Banking; secondary d. Primary; secondary Answer: D 5. As new information is available, financial markets,
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Quiz 1 - Quiz 1 1. Which of the following would be...

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