The decision firms make about new capital projects is most like the decision consumers make when they decide
A) whether to take a new job.
B) which of two new jobs to take.
C) what brand of coffee to buy.
D) whether to buy a new house.
E) whether to go on vacation.
D
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Explain what post hoc fallacy means and give an example
What will be an ideal response?
A difference between a share of stock in a corporation and a corporate bond is that
A) the share of stock is a legal claim while the bond is not. B) the bond owner has voting rights within the corporation whereas the stockholder does not. C) the bond owner is entitled to receive a fixed annual coupon payment plus a lump-sum payment at the bond's maturity date, whereas the stockholder is entitled to a share of future profits. D) stocks are issued in return for funds that are lent to the corporation.