Author Question: Compared with a partnership, a corporation can raise money more easily because owners of a ... (Read 18 times)

Mollykgkg · **on:** Jul 1, 2018

Compared with a partnership, a corporation can raise money more easily because owners of a corporation have less liability for the corporation's actions than owners of a partnership have for the partnership's actions.

Indicate whether the statement is true or false

Question 2

Workers prefer layoffs to wage reductions during economic downturns because

A) layoffs benefit workers more than the firms.
B) workers try to provide firms with incentives to report true economic conditions.
C) firms will keep workers even during economic downturns to avoid more costs.
D) there is symmetric information.

pikon · **Reply #1 on:** Jul 1, 2018

Answer to Question 1

T Shareholders in a corporation can only lose what they have invested, whereas partners may be liable for actions beyond the amounts invested.

Answer to Question 2

B