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10 Cards in this Set
- Front
- Back
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There is unlimited liability in a generalpartnership. |
True |
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Dividends paid to corporate stockholders have alreadybeen taxed once as corporate income. |
True |
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Profits of a Subchapter S corporation are taxed atcorporate tax rates. |
False |
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Social responsibility and profit maximization aresynonymous |
False |
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Existing securities are traded in the secondarymarket. |
True |
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Proper risk-return management means that |
the firm must determine an appropriate trade-offbetween risk and return |
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A Subchapter S corporation |
has all the organizational benefits of a corporationand its income is only taxed once. |
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Agency theory examines the relationship betweenthe |
owners of the firm and the managers of the firm. |
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Companies that have higher risk than a competitor inthe same industry will generally have |
to pay a higher interest rate than its competitors.B. a lower relative stock price than itscompetitors.C. a higher cost of funds than its competitors |
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financial capital |
is the form of capital is found on the balance sheetunder long-term liabilities and equity. |
