A. A well-respected president of a firm suddenly resigns B. A well-respected chairman of the Federal Reserve Bank suddenly resigns C. A poorly managed firm suddenly goes out of business due to lack of sales D. A key employee suddenly resigns and accepts employment with a key competitor E. A well-managed firm reduces its work force and automates several jobs
Question 12 One disadvantage of the corporate form of business ownership is the: A. Limited liability protection provided for all owners. B. Unlimited life of the firm. C. Difficulties encountered when changing ownership. D. Double taxation of profits. E. Firms ability to raise cash.
Question 13 Which one of the following statements about preferred stock is true? A. There is no significant difference in the voting rights granted to preferred and common shareholders.