Thin Ice Inc

question 54

Multiple Choice

Thin Ice Inc., a corporation, dissolves. Thin's net corporate assets will be used first to pay

• A) federal and state taxes.
• B) common stockholders.
• C) preferred stockholders.
• D) bondholders.

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Definitions:

Comparative Advantage

The capacity for a person, business, or nation to generate a product or service with a smaller opportunity cost compared to its rivals.

Competition

Rivalry among business firms for resources and customers.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service more efficiently than its competitors when using the same amount of resources.

Opportunity Cost

The benefit that is missed or given up when choosing one alternative over another.