Answer: Option B
Explanation: In simple words, a corporation refers to an entity which has its own separate legal identity from its owners. Generally these entities works on a very large scale and the ownership rights of such companies is divided into many shares which are hold by several different individuals.
The holders of stock of such entities gets return in form of dividend and can resell their shares for capital gain in an open market of securities. As the owner and the company are two different entities the owner is not liable to report for the action of selling shares to the company.
This is an example of "deductive reasoning".
Deductive reasoning is a coherent procedure in which a conclusion depends on the concordance of numerous premises that are commonly thought to be valid.
Deductive reasoning is sometimes alluded to as top-down logic. Its partner, inductive thinking, is some of the time alluded to as base up rationale. Where deductive thinking continues from general premises to an explicit end, inductive thinking continues from explicit premises to a general end.
Answer:
The correct answer is C: likely that a court will allow the rescission based on a mistake of fact.
Explanation:
Brian was not aware of that fact that the horse is incapable of breeding at the point he buys it, but Larson assures Brian the horse is healthy. In this light, if Brian sues to cancel the contract with Larson, the court will allow it based on a mistake of fact. This way the court will reduce any civil liability or criminal culpability because Larson might not know that the horse cannot breed, although he is certain that the horse is healthy.
A.Federal Reserve system.
B. banking system.
C.monetary system.
D.financial system.
2.When a large, well-known corporation wishes to borrow directly from the public, it can
A.sell bonds.
B.sell shares of stock.
C.go to a bank for a loan.
D.All of the above are correct.
3.Which of the following statements about the term of a bond is correct?
A.Term refers to the various characteristics of a bond, including its interest rate and tax treatment.
B.The term of a bond is determined entirely by its credit risk.
C.The term of a bond is determined entirely by how much sales charge the buyer of the bond pays when he or she purchases the bond.
D.Interest rates on long-term bonds are usually higher than interest rates on short-term bonds.
4.The economy’s two most important financial markets are
A.the investment market and the saving market.
B.the bond market and the stock market.
C.banks and the stock market.
D,financial markets and financial institutions.
5.Two of the economy’s most important financial intermediaries are
A.suppliers of funds and demanders of funds.
B.banks and the bond market.
C.the stock market and the bond market.
D. banks and mutual funds.
6. We associate the term debt finance with
A.the bond market, and we associate the term equity finance with the stock market.
B.the stock market, and we associate the term equity finance with the bond market.
C.financial intermediaries, and we associate the term equity finance with financial markets.
D.financial markets, and we associate the term equity finance with financial intermediaries.
7. Northwest Wholesale Foods sells common stock. The company is using
A.equity financing and the return shareholders earn is fixed.
B.equity financing and the return shareholders earn depends on how profitable the company is.
C.debt financing and the return shareholders earn is fixed.
D.debt financing and the return shareholders earn depends on how profitable the company is.
8. If the tax revenue of the federal government exceeds spending, then the government necessarily
A.runs a budget deficit.
B.runs a budget surplus.
C.runs a national debt.
D.will increase taxes.
9. The source of the supply of loanable funds
A. is saving and the source of demand for loanable funds is investment.
B. is investment and the source of demand for loanable funds is saving.
C. and the demand for loanable funds is saving.
D. and the demand for loanable funds is investment.
10.What would happen in the market for loanable funds if the government were to increase the tax on interest income?
TR = 30Q, AR = 30, and MR = 30
TR = 35Q, AR = 35, and MR = 35
TR = 60 - 0.3Q, AR = 60 - 0.6Q, and MR = 60 - 0.3Q
TR = 60Q - 0.3Q2 , AR = 60 - 0.3Q, and MR = 60 - 0.6Q