The role of financial markets is to bring savers and users of funds together at the least possible cost and inconvenience.
Answer: True
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Finance
- The "new issues market" -- where first-time security issues are offered for sale -- is called the secondary market.
- A security is an instrument that represents a financial liability to the holder and a financial asset to the issuer.
- A corporation is a "legal person" that can be sued.
- In a general partnership, each partner is personally responsible for only the first $335,000 of the company's liabilities.
- In a sole proprietorship, the owner is personally responsible for only the first $335,000 of the company's debt.
- Assume that a "temporary" additional (US federal tax related) first-year bonus depreciation of 50 percent applies to a new, $100,000 piece of equipment purchased by Bellemans Chocolatier, Inc. The asset has a $10,000 estimated final salvage value. If this asset is fully depreciated for tax purposes over its useful life, the overall amount that Bellemans will have depreciated for tax purposes is .
- How are funds allocated efficiently in a market economy?
- Which of the following is NOT an example of a financial intermediary?
- The purpose of financial markets is to:
- Money market mutual funds
- A major advantage of the corporate form of organization is:
- A 30-year bond issued by Gary's Plaid Pants Warehouse, Inc., in 1997 would now trade in the
- A corporation in which you are a shareholder has just gone bankrupt. Its liabilities are far in excess of its assets. You will be called on to pay:
- The Counting House, Inc., purchased 5-year property class equipment for $60,000. It uses the MACRS method of depreciation. What is tax depreciation for the second year of the asset's life?
- Michael Cohn is a "member" (a type of owner) of a marine supply business. Michael's business is
- Which of the following enjoys limited liability?