1.Which of the following statements about corporations is TRUE?

	1.	There are only two parties of interest in the corporation, the shareholders and the managers
	2.	There is no separation between ownership and control
	3.	Corporations are taxed at the personal tax rate
	4.	Shareholders are not liable for the company’s debts beyond the extent of their investment

2.

Which of the following is NOT a factor that will contribute to greater rivalry within an industry?

	1.	The industry is experiencing rapid growth
	2.	Competitors within the industry are committed to the business and have aspirations towards becoming the dominant firm within the industry
	3.	The barriers to exiting the industry are high
	4.	There are a large number of competitors within the industry that are roughly equal in size and power

3.

Which of the following statements is TRUE about likelihood that a new company can enter an industry as a competitor?

	1.	It is easier for a new company to enter when capital requirements are high
	2.	High customer switching costs make it easier for a new company to enter
	3.	When existing firms have control over distribution channels, it is easier for a new company to enter
	4.	Low capital requirements make it easier for a new company to enter

Answer rating: 100% (QA)

ANSWER 1 D Shrehlders re nt lible fr the mnys debts beynd the extent f their investment Shrehlders n... View the full answer