A) There is no limit on a limited partner's liability.
B) A limited partner's liability is limited by the amount of their investment.
C) A limited partner is not liable until all the assets of the general partners have been exhausted.
D) A general partner's liability is limited by the amount of their investment.
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A) $2520
B) $2525
C) $2593
D) $2600
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A) the chief executive officer.
B) the chief financial officer.
C) the chief operating officer.
D) the chairman of the board.
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A) has large day to day fluctuations in price.
B) has a large bid-ask spread.
C) can easily be converted into cash.
D) is traded on a stock exchange.
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A) In bankruptcy, management is given the opportunity to reorganize the firm and renegotiate with debt holders.
B) Because a corporation is a separate legal entity, when it fails to repay its debts, the people who lent to the firm, the debt holders are entitled to seize the assets of the corporation in compensation for the default.
C) As long as the corporation can satisfy the claims of the debt holders, ownership remains in the hands of the equity holders.
D) If the corporation fails to satisfy debt holders' claims, debt holders may lose control of the firm.
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A) Partnership
B) "C" corporation
C) "S" corporation
D) Limited Partnership
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A) Yes, as long as the value of the firm's equity increases, society is better off.
B) Yes, as long as the increase in the value of the firm's equity does not come at the expense of others.
C) No, any gain in the value of the firm's equity is always less than the cost to society.
D) No, any gains in the value of the firm's equity are perfectly offset by societal costs.
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A) Access to capital markets
B) Limited liability
C) Unlimited life
D) All of the above
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A) the London Stock Exchange.
B) NASDAQ.
C) the American Stock Exchange.
D) the New York Stock Exchange.
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Key points:
NYSE has physical location-N...View Answer
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NYSE has physical location-N...
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A) Coca-Cola receives the money because the company has issued new shares.
B) you buy the shares from another investor who decided to sell the shares.
C) you buy the shares from a Stock Exchange.
D) you buy the shares from the goverment.
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A) 15%
B) 35%
C) 45%
D) 50%
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A) Coca-Cola receives the money because the company has issued new shares.
B) you buy the shares from another investor who decided to sell the shares.
C) you buy the shares from a Stock Exchange.
D) you buy the shares from the government.
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A) buy more shares in an effort to gain control of the firm.
B) file a shareholder resolution.
C) replace the CEO through a grassroots shareholder uprising.
D) sell their shares.
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A) $210
B) $300
C) $350
D) $500
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A) Sole proprietorship
B) Partnership
C) "Corporation
D) Limited Partnership
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A) because managers have little incentive to work in the interest of shareholders when this means working against their own self-interest.
B) because of the separation of ownership and control in a corporation.
C) Both A and B
D) None of the above
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