test - 1 Which of the following statements is CORRECT a One...

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1. Which of the following statements is CORRECT? a. One of the advantages of the corporate form of organization is that it avoids double taxation. b. It is easier to transfer one’s ownership interest in a partnership than in a corporation. C. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. d. One of the advantages of a corporation from a social standpoint is that every stockholder has equal voting rights, i.e., “one person, one vote.” e. Corporations of all types are subject to the corporate income tax. 2. Which of the following actions would tend to reduce conflicts of interest between stockholders and bondholders? 3. Which of the following statements is CORRECT? 4. The primary operating goal of a publicly-owned firm interested in serving its stockholders should be to 5. Which of the following statements is CORRECT?
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a. While the distinctions are becoming blurred, investment banks generally specialize in lending money, whereas commercial banks generally help companies raise capital from other parties. B. The NYSE operates as an auction market, whereas Nasdaq is an example of a dealer market. c. Money market mutual funds usually invest their money in a well-diversified portfolio of liquid common stocks. d. Money markets are markets for long-term debt and common stocks. e. A liquid security is a security whose value is derived from the price of some other "underlying" asset.
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