ch1 - Question 1(1 point Which of the following statements...

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Question 1 (1 point) Which of the following statements is CORRECT? Student response: Student Response Answer Choices a. Corporations generally are subject to fewer regulations and more favorable tax treatment than sole proprietorships and partnerships. This is why corporations do most of the business in the United States. b. Managers who face the threat of hostile takeovers are less likely to pursue policies that maximize shareholder value than are managers who do not face the threat of hostile takeovers. c. One advantage of the corporate form of organization is that liability of the owners of the firm is limited to their investment in the firm. d. Because of their simplified organization, it is easier for sole proprietorships and partnerships to raise large amounts of outside capital than it is for corporations. e. Bond covenants are an effective way to resolve conflicts between shareholders and managers. Score:
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1 / 1 Question 2 (1 point) Which of the following is a primary market transaction? Student response: R Score: 1 / 1 Question 3 (1 point) You recently sold 100 shares of your new company, XYZ Corporation, to your brother at a family reunion. At the reunion your brother gave you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes this transaction? Student response: R Score: 0 / 1 Question 4 (1 point) Which of the following statements is CORRECT? Student response:
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R Score: 1 / 1 Question 5 (1 point) Suppose the U. S. Treasury announces plans to issue $50 billion of new bonds. Assuming the announcement was not expected, what effect, other things held constant, would that have on bond prices and interest rates? Student response: R Score: 1 / 1 Question 6 (1 point) Which of the following statements is CORRECT? Student response: R
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Score: 1 / 1 Question 7 (1 point) Which of the following statements is CORRECT? Student response: R Score: 1 / 1 Question 8 (1 point) Which of the following statements is CORRECT? Student response:
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R Score: 1 / 1 Question 9 (1 point) Which of the following statements is CORRECT? Student response: R
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Score: 1 / 1 Question 10 (1 point) Which of the following statements is CORRECT? Student response: R Score: 1 / 1 Total score: 9 / 10 = 90.0% Question 1 (1 point) Which of the following statements is CORRECT? Student response: R
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Score: 1 / 1 Question 2 (1 point) Which of the following statements is CORRECT? Student response: R Score: 1 / 1 Question 3 (1 point) One drawback of switching from a partnership to the corporate form of organization is the following: Student response: R
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Score: 1 / 1 Question 4 (1 point) Which of the following statements is CORRECT? Student response: R Score: 1 / 1 Question 5 (1 point) Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy?
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