Agency costs refer to: A. corporate income subject to double taxation. B. the co
ID: 1240631 • Letter: A
Question
Agency costs refer to:A. corporate income subject to double taxation.
B. the costs of any conflicts of interest between stockholders and management.
C. the total dividends paid to stockholders over the lifetime of a firm.
D. the costs that result from default and bankruptcy of a firm.
E. the total interest paid to creditors over the lifetime of the firm.
Working capital management:
A. ensures that sufficient equipment is available to produce the amount of product desired on a daily basis.
B. ensures that long-term debt is acquired at the lowest possible cost.
C. ensures that dividends are paid to all stockholders on an annual basis.
D. balances the amount of company debt to the amount of available equity.
E. is concerned with managing day to day cash flow.
Which of the following are disadvantages of a partnership?
I. limited life of the firm
II. personal liability for firm debt
III. greater ability to raise capital than a sole proprietorship
IV. lack of ability to transfer partnership interest
A. I and II only
B. III and IV only
C. II and III only
D. I, II, and IV only
E. I, III, and IV only
Explanation / Answer
B E D