Author Question: Which of the following reasons is the most responsible for corporations being the most important ... (Read 46 times)

asd123 · **on:** Jul 11, 2018

Which of the following reasons is the most responsible for corporations being the most important form of business organization in the United States?

A) Corporations have limited life.
B) Stockholders have unlimited liability.
C) Corporations are subject to less government regulation than other forms of business organizations.
D) Corporations have the ability to raise larger sums of capital than other forms of business organizations.

Question 2

If a firm is in a zero tax bracket, then the levered and unlevered betas will be identical no matter what the debt-equity ratio.

Indicate whether the statement is true or false