Government intervention

a. can provide incentives to conduct business in an illegal black market

b. plays no role in generating wealth

c. is the best way to eliminate poverty

d. does not enforce property rights

An investment adviser has researched a privately held company and is extremely bullish on the company's prospects.

A distribution from a corporation to a shareholder will only be treated as a dividend for tax purposes if the distribution is paid out of current or accumulated earnings and profits. a. True b. False

Casino's frequently reach middle-range customers by:

Capital recovery (CR) is the equivalent annual cost of owning the asset plus the return on the initial investment.

Darren runs a barbershop with fixed costs equal to $100 per day and a total output of 50 haircuts per day. what is his weekly total fixed cost if he is ope

When a tax is levied on buyers of tea, a. buyers of tea and sellers of tea both are made worse off. b. buyers of tea are made worse off, and the well-being of sellers is unaffected. c.

Which of the following is not correct? a. A tax places a wedge between the price that buyers pay and the price that sellers receive. b. In the new after-tax equilibrium, buyers and sellers share the burden of the tax. c.

The major benefit of diversification is the: a. increased expected return. b. removal of all negative risk assets from the portfolio. c. reduction in the portfolio's total risk. d. reduction in the portfolio's systematic risk.

Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the following costs were incurred: Acquisition cost 30,000, Sales tax 1,800, Title transfer 250, paid to the company logo on

Horatio Alger is the product manager for Brand X, a consumer product with a retail price of $1.20. Retail margins are 35% while wholesalers take an 11.5% margin.