Exam 6: Firms,the Stock Market,and Corporate Governance

The price of a financial asset should be equal to

What are the advantages of setting up a proprietorship or partnership as opposed to a corporation?

What is the present value of $575 in a one year if the current rate of interest is 4 percent?

Which of the following would explain why accounting profit might be greater than economic profit?

Jake sells Star Wars memorabilia on eBay.His annual revenue is $42,000 per year,and the explicit costs of his business are $10,000.What is his accounting profit?

How is economic profit found?

Dividends are

How do unlimited and limited liability differ?

Explain the relationships between a corporation's shareholders,its board of directors,and its top managers.

When you buy previously-issued shares of Facebook stock,this transaction takes place in the

Tanesha sells homemade candles over the Internet.Her annual revenue is $64,000 per year,the explicit costs of her business are $17,000,and the opportunity costs of her business are $22,000.What is her accounting profit?

An implicit cost is

Mortgages issued to borrowers who fail to document that their incomes are high enough to afford their mortgage payments are known as ________ mortgages.

Which type of business is the most difficult to set up?

If you own a bond with a 3 percent coupon rate and new bonds are paying 8 percent,what will happen to your bond's market price?

On a balance sheet,short-term debts such as accounts payable are listed as

Which type of businesses earns the majority of profits in the United States?

How has organizing a successful firm in a market economy changed over the last century?

All of the following represent differences between stocks and bonds except

Which of the following is an example of an implicit cost a firm might incur?