Which of the following is true?
a. Most stockholders own stock because they want to participate in the daily decision making of the firms that they own.
b. The shareholders of a large well-established firm can be reasonably sure that they will earn a real rate of return of about 7 percent in the future.
c. The potential losses of shareholders are limited to the amount of their investment.
d. Ownership of a corporate bond provides the bondholder with an ownership right to a fraction of the firm's future profits.
C
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If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:
a. 0. b. 1. c. 4. d. 5.
In return for their financial backing, venture capitalists
A. Share in the profits that may result. B. Are exempt from risk. C. Are repaid a fixed amount of interest. D. Are guaranteed a return on their investment.