If the liquidation value of a firm is negative, then:
A) the firm's debt exceeds the market value of assets.
B) the firm's debt exceeds the book value of equity.
C) the market value of assets exceeds the firm's debt.
D) the book value of assets exceeds the firm's debt.
Answer: A) the firm's debt exceeds the market value of assets.
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Which of the following is a similarity between a living trust and an inter vivos trust?
A) both of them are subject to probate B) both of them require the beneficiaries to be present during the time of creation of the trust C) both of them are created while the settlor is still alive D) both of them are free from changes resulting from operations of law like annulment
DynaTech's chief operating officer sees recent worldwide technological advances as playing a key role in helping the company to globalize. Which of the following, if true, most strengthens his position?
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