A Good Measure of Confidence in a Corporation's Future Is

question 189

Multiple Choice

A good measure of confidence in a corporation's future is

• A) par value.
• B) price/earnings ratio.
• C) dividends yield.
• D) return on equity.

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Definitions:

Liquidation

The process of converting a company's assets into cash to pay off creditors before closing the business.

Straight Bankruptcy

Also known as Chapter 7 bankruptcy, it involves the liquidation of a debtor's non-exempt assets to pay creditors.

Federal Law

Laws passed by the national government of the United States that apply throughout the country.

State Law

State law refers to the legal rules and regulations that are enacted and enforced by individual states within a country, as opposed to federal or national laws.