Which of the following statements is false? Group of answer choices One disadvantage of the corporate...

Which of the following statements is false?

Group of answer choices

One disadvantage of the corporate form is the double taxation of profit.

A debenture is an unsecured debt with maturity longer than 10 years.

The primary goal of a publicly-owned for-profit corporation is to maximize the value of stock.

As interest rate increases significantly, companies are more likely to call the callable bonds they have issued.

Equity holders have a residual claim in the firm while creditors have voting power.

Solutions

Expert Solution

The incorrect statement is

Equity holders have a residual claim in the firm while creditors have voting power.

Creditors do not have any voting power in the firm. Shareholders have voting power.

All statements are correct

The goal of a firm is to maximise wealth i.e. stock price

Double taxation of profit for corporates is a diadvantage

jeff jeffy answered 1 year ago

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