Money markets are markets for ______.
consumer automobile loans
short-term debt securities
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Which of the following could explain why a business might choose to organize as a corporation rather than as a sole proprietorship or a partnership?
A. Corporations generally face fewer regulations.
B. Corporations generally face lower taxes.
C. Corporations generally find it easier to raise capital.
D. Corporations enjoy unlimited liability.
E. Statements C and D are correct.
The advantages of incorporation include unlimited life, easy transferability of ownership interest, limited liability, and ease of raising money in the capital markets. Regulations and double taxation are disadvantages of corporations.
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Which of the following statements is true?
One of the benefits of incorporating your business is that you become entitiled to receive unlimited liability.
Sole proprietorships are subject to more regulations than corporations.
Sole proprietorships do not have to pay corporate tax.
All of the above answers are correct.
None of the above answers are correct.
Sole proprietorships pay personal income tax, not corporate tax. The other statements are false. Corporations are subject to limited liability, but are subject to more regulations than the other forms of business organizations.
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While other things are held constant, which of the following actions would increase the amount of cash on a company's balance sheet?
The company repurchases common stock.
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