5. 4. 6. 2. 3. 1. Generally, a corporation is owned by its A) managers. B)...

  

Transcribed Image Text:

5. 4. 6. 2. 3. 1. Generally, a corporation is owned by its A) managers. B) board of directors and shareholders. C) shareholders. D) managers, board of directors, and shareholders. A firm's investment decision is also called its A) financing decision. B) liquidity decision. C) capital budgeting decision. D) leasing decision. Which of the following is not a financial asset? A) common stock. B) bank loans C) preferred stock D) buildings Costs associated with the conflicts of interest between the managers and the shareholders of a corporation are called: A) legal costs. B) bankruptcy costs. C) administrative costs. D) agency costs. The following groups are some of the claimants to a firm's income stream: A) shareholders and bondholders only. B) shareholders, bondholders, and employees only. C) shareholders, bondholders, employees, and management only. D) shareholders, bondholders, employees, management, and government. The corporation is the best form of organization in terms of raising capital. True False 5. 4. 6. 2. 3. 1. Generally, a corporation is owned by its A) managers. B) board of directors and shareholders. C) shareholders. D) managers, board of directors, and shareholders. A firm's investment decision is also called its A) financing decision. B) liquidity decision. C) capital budgeting decision. D) leasing decision. Which of the following is not a financial asset? A) common stock. B) bank loans C) preferred stock D) buildings Costs associated with the conflicts of interest between the managers and the shareholders of a corporation are called: A) legal costs. B) bankruptcy costs. C) administrative costs. D) agency costs. The following groups are some of the claimants to a firm's income stream: A) shareholders and bondholders only. B) shareholders, bondholders, and employees only. C) shareholders, bondholders, employees, and management only. D) shareholders, bondholders, employees, management, and government. The corporation is the best form of organization in terms of raising capital. True False

Answer rating: 100% (QA)

The detailed answer for the above question is provided below 1The corporation is owned by its board of directors and shareholders A corporation is a separate legal entity that is owned by its sharehol... View the full answer