____________ Are Good Examples of the Limits to Arbitrage Because

question 23

Multiple Choice

____________ are good examples of the limits to arbitrage because they show that the law of one price is violated. I) Siamese twin companies
II. Unit trusts
III. Closed-end funds
IV. Open-end funds
V. Equity carve-outs

• A)I and II
• B)I, II, and III
• C)I, III, and V
• D)IV and V

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Definitions:

Tax Accounting

The method or process of preparing tax returns and tax payments, and the planning of financial transactions to minimize tax liabilities.

Limited Liability Partnerships (LLP)

A legal structure for businesses where partners' liabilities are limited to their investment in the company, protecting personal assets from business debts.

Personal Liability

Personal liability is an individual's legal responsibility to repay debt or fulfill obligations from personal assets if the business or venture they are involved in fails to meet these obligations.

Pass-Through Tax Entity

A business structure that avoids corporate tax, instead, profits and losses are passed through to the individual owners' tax returns.