ECON 2560 Study Guide - Final Guide: Liquidity Preference, Interest, Dow Jones Industrial Average
26 Oct 2015
School
Department
Course
Professor
Document Summary
Multiple choice problems (60 questions 2 marks each): circle the best response. D. profits taxed at the corporate level and the shareholder level: a board of directors is elected as a representative of the corporation"s: Financial assets are used in production; real assets are the products of production. Financial assets represent claims to income that are generated by real assets. Real assets have less value than financial assets. Real assets are tangible; financial assets are not. D. financial assets appreciate in value; real assets depreciate in value: the primary goal of corporate management should be to: Winter 2015: maximize the firm"s market share. D. maximize the shareholders" wealth: when managers" compensation plans are tied in a meaningful manner to the profits of the firm, agency problems: lower-valued shares, only common stocks. Investing in real assets are shifted to other stakeholders. are not affected. shares with greater profit potential.
