FIN 534 RANK Imagine Your Future /fin534rank.com FIN 534 RANK Imagine Your Future /fin534rank.com - Page 43

5) A major disadvantage of all partnerships relative to all corporations is the fact that federal income taxes must be paid by the partners rather than by the firm itself Question 9 Which of the following statements is CORRECT? 1) If you purchase 100 shares of Disney stock from your brother-in-law, this is an example of a primary market transaction. 2) If Disney issues additional shares of common stock through an investment banker, this would be a secondary market transaction. 3) The NYSE is an example of an over-the-counter market. 4) Only institutions, and not individuals, can engage in derivative market transactions. 5) As they are generally defined, money market transactions involve debt securities with maturities of less than one year Question 10 Which of the following factors would be most likely to lead to an increase in interest rates in the economy?