A Common Problem for Closely Held Corporations Is

question 82

Multiple Choice

A common problem for closely held corporations is:

• A) the lack of access to substantial amounts of capital.
• B) the restriction that shareholders receive only one vote each.
• C) the separation of ownership and management.
• D) an abundance of agency problems.

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Definitions:

Holding-Period Return

Is the total return received from holding an asset or portfolio of assets over a period of time, typically expressed as a percentage.

Dividend

A portion of a company's earnings distributed to shareholders, typically in cash or additional stock.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to investors.

Supply of Savings

The total amount of savings that households are willing to provide at various interest rates, often influencing investment and economic activity.