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

Of the types of business organizations in the United States,partnerships account for the ________ percentage of firms and ________ percentage of profits.

Juliana,Gabrielle,and Marcela want to start a business they are the only owners and the company does not issue stock.The type of business they want to start is a

A sole proprietorship is limited to how many owners?

All of the following are characteristics of stock except

Which of the following takes place in the direct finance market?

Yolanda wants to expand her microbrewery business by buying out a competitor and is going to sell newly-issued corporate bonds to do so.This is an example of using ________ for her expansion plans.

From the highest percentage to the lowest percentage,the percentage of revenues earned by businesses in the United States is represented by which of the following?

The possible double taxation of income is a disadvantage for

Veruca sells therapeutic bath salts on the Internet.Her annual revenue is $52,000 per year,the explicit costs of her business are $14,000,and the opportunity costs of her business are $17,000 per year.What is her economic profit?

Georgia's great uncle gave her a $5,000 savings bond as a wedding gift.The bond pays $5,000 at maturity,which is in 10 years.If the interest rate is 4%,the bond has a present value of $ 3,377.82.

What is an income statement?

Before its IPO,Twitter was an example of a private firm.As a private firm,Twitter was

Of the types of business organizations in the United States,corporations account for ________ percentage of firms and ________ percentage of profits.

Dividends are the interest rates paid on stocks.

Indirect finance refers to the flow of funds from savers to borrowers through financial intermediaries.

If a stock's dividend is expected to grow at a constant rate of 4 percent in the future and it has just paid a dividend of $6.00 per share,and you have an alternative investment of equal risk that will earn a 7 percent rate of return,what would you be willing to pay per share for this stock?

What is an outside director?

Of the types of business organizations in the United States,sole proprietorships account for the ________ percentage of firms and the ________ percentage of profits.