Deleveraging is the process of reducing leverage, and therefore reducing the risk to capital from any further declines in asset prices

An advantage of a partnership over a corporation is that

A) a partnership's profits are taxed only once, while retained profits of a corporation are taxed twice. B) a partnership's owners usually have limited liability, while the entire wealth of owners of a corporation is at risk. C) a partnership has a perpetual life, while a corporation dies with its owners. D) a partnership's cost of capital is low relative to that of a corporation.

Refer to Table 2-9. If the two countries specialize and trade, who should export wristwatches?

A) Thailand B) They should both be importing wristwatches. C) Japan D) There is no basis for trade between the two countries.