Raise money to fund firm long-minus term investments

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1. Why is it so hard to find extremely profitable? projects?

A. To find high profit? projects, the product or service must be differentiated? and/or have a cost advantage over the competition.

B. To find high profit? projects, you must locate imperfections in the market that are not currently being taken advantage of.

C. If an industry is generating large? profits, then new entrants are? attracted, driving down profits.

D. All of the above.

2. Disadvantages of the partnership are

A. expense of formation.

B. lack of permanence.

C. double taxation of income.

D. unlimited liability.

E. b and d.

F. a and d.

3. Determining the best way to raise money to fund a? firm's long-minus term investments is called

A. the money flow processing decision.

B. the portfolio decision.

C. the capital budgeting decision.

D. the capital structure decision.

4. The true owners of the corporation are the

A. common stockholders.

B. board of directors of the firm.

C. preferred stockholders.

D. holders of debt issues of the firm.

Reference no: EM131625121

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