9. The choice of the proper mixture of debt and equity, used to finance a corporation, is also referred to as the A. capital budgeting decision. B. capital structure decision. C. investment decision. D. liquidity decision.
9. The choice of the proper mixture of debt and equity, used to finance a corporation, is also referred to as the
A. capital budgeting decision.
B. capital structure decision.
C. investment decision.
D. liquidity decision.
10. As a legal entity, a corporation can perform the following functions EXCEPT:
A. vote
B. borrow money, lend money, sue and be sued, and vote.
C. borrow money and lend money.
D. borrow money, lend money, and sue and be sued.
12. A firm's investment decision is also called its
A. liquidity decision.
B. financing decision.
C. leasing decision.
D. capital budgeting decision.
13. A corporation, potentially, has infinite life because it
A. has the same ownership and management.
B. is a legal entity.
C. is closely regulated.
D. has limited liability.
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