Principles of Corporate Finance

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson
Download our mobile app to listen on the go
Get App

Questions and Answers

What is the guiding logic of all corporate finance?

  • Corporate umbrella insulates the eventual owners from personal risk
  • All projects must be self-liquidating (correct)
  • New investments should be made by well-managed enterprises
  • New capital should be financed in ways that create new owners

What is the expected payback period for new equipment in the corporate sector?

  • Within six to eight years
  • Within one to two years
  • Within ten to twelve years
  • Within three to five years (correct)

How much new productive assets are added annually to the U.S. economy?

  • Over $1 trillion
  • Over $10 trillion
  • Over $2 trillion (correct)
  • Over $5 trillion

What is the purpose of Capital Homesteading?

<p>To democratize access to future capital ownership and profits (A)</p> Signup and view all the answers

What does the Center for Economic and Social Justice call the process of Capital Homesteading?

<p>Counter-inflationary process (D)</p> Signup and view all the answers

What would Capital Homesteading provide to all citizens?

<p>Self-liquidating capital credit (D)</p> Signup and view all the answers

What is the purpose of extending binary corporate finance throughout the economy?

<p>To break the monopoly of capital ownership (B)</p> Signup and view all the answers

What is the definition of 'pure credit'?

<p>Credit independent of past savings (C)</p> Signup and view all the answers

What would be the result of limiting the extension of 'pure credit' by the central bank to current non-owners?

<p>Noninflationary expansion of the ownership of capital assets (C)</p> Signup and view all the answers

What would be the effect of distributing capital incomes broadly within a nation of owners?

<p>Reduction in prices (B)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Introduction to Corporate Finance
13 questions
Corporate Finance Principles
10 questions

Corporate Finance Principles

WellEstablishedBongos2565 avatar
WellEstablishedBongos2565
Use Quizgecko on...
Browser
Browser