1) The recent financial crisis was exacerbated by: A) Extremely high interest ra

Question

1) The recent financial crisis was exacerbated by:

A) Extremely high interest rates in the US that stifled investments

B) Managers who underestimated the real risks of their decisions and borrowed excessively

C) A lack of financial leverage that made US firms less competitive in world markets

D) Managers who overestimated risk and hence did not invest sufficient funds.

2) which of the following forms of business organization limits the liability of owners>

a) sole proprietorship

b) corporation

c) general partnership

d) two person partnership

Explanation / Answer

1) The recent financial crisis was exacerbated by:

Solution-

B) Managers who underestimated the real risks of their decisions and borrowed excessively

2) which of the following forms of business organization limits the liability of owners>

Solution-

a) sole proprietorship

The business run by one individual for his or her own benefit. In sole proprietorships have no existence apart from the owner. The liabilities associated with the business are the personal liabilities of the owner, The owner undertakes all the risks of the business to the extent of his/her assets.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.