The Property Rights Theory of Corporations Has It That Incorporation

question 3

Multiple Choice

The property rights theory of corporations has it that incorporation _________.

• A)is a general aspect of ownership
• B)is a matter of owning enough capital
• C)should be accompanied by rules
• D)is anyone's right

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Definitions:

Credit Default Swaps

Financial derivatives that allow an investor to swap or offset their credit risk with that of another investor.

Insurance Contract

A legal agreement between an insurance company and the policyholder, which specifies the terms for the payment of insurance benefits.

Default

Failure to fulfill a financial obligation, especially failing to make payments on a loan, bond, or other debt instrument.

Nonfinancial Businesses

Companies primarily engaged in activities other than financial services, such as manufacturing, services, or retail.