1. Which of the following is/are (a) favorable characteristics of a Corporate charter for a firm in accessing the Capital Markets?
A. Ease of start up
B. Limited Liability for Shareholders
C. Single Taxation of the Firm’s profit
D. Liquidity of Shareholders’ ownership interest
E. Both B & D are favorable
2. If the management of a firm is successful in increasing the value of a firm, one would generally see this increased value:
A. In the carrying value of the Assets on the firms Balance Sheet
B. In the reported value of Shareholders Equity on the firms Balance Sheet
C. In the stock price and total market capitalization of the firm
D. In the firm’s bond price
E. Both B & C are correct