Multiple choice

Multiple choice - 1. Buying stock in a corporation is...

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1. Buying stock in a corporation is attractive to investors because: A. Stockholders are not liable for the corporation's actions and debts. B. Stock is easily transferred. C. A corporation has unlimited life. D. Shareholders are not agents of the corporation. E. All of the above. 2. The carrying value of a long-term note payable: A. Is computed as the future value of all remaining future payments, using the market rate of interest. B. Is the face value of the long-term note less the total of all future interest payments. C. Is computed as the present value of all remaining future payments, discounted using the market rate of interest at the time of issuance. D. Is computed as the present value of all remaining interest payments, discounted using the note's rate of interest. E. Decreases each time period the discount on the note is amortized. 3. Current assets divided by current liabilities is the: A. Current ratio. B. Quick ratio.
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This note was uploaded on 03/02/2012 for the course MG 420 taught by Professor Stroud during the Spring '12 term at Park.

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Multiple choice - 1. Buying stock in a corporation is...

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