FIN534Assign1hard

FIN534Assign1hard - year, whereas futures markets...

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Lachele Hardic FIN534 Assignment 1 1. Which of the following statements is CORRECT? a. One of the disadvantages of a sole proprietorship is that the proprietor is exposed to unlimited liability. 2. Which of the following would be most likely to lead to higher interest rates on all debt securities in the economy? d. Corporations step up their expansion plans and thus increase their demand for capital. 3. Which of the following statements is CORRECT? c. The distinguishing feature between spot markets versus futures markets transactions is the maturity of the investments. That is, spot market transactions involve securities that have maturities of less than one
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Unformatted text preview: year, whereas futures markets transactions involve securities with maturities greater than one year. 4. Which of the following statements is CORRECT? d. Corporations and partnerships have an advantage over proprietorships because a sole proprietor is exposed to unlimited liability, but the liability of all investors in the other types of businesses is more limited. 5. Which of the following statements is NOT CORRECT? b. Going public establishes a firm's true intrinsic value, and it also insures that a highly liquid market will always exist for the firms shares....
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