Dane is a stockholder in smallworld, inc., a c corporation that manufactures amusement park rides. the company recently lost a major court decision and will probably be forced into bankruptcy. in fact, the damages awarded are so great that, even if all company assets are sold and the proceeds are used to pay its debts, smallworld is likely to still owe money to its creditors. if smallworld goes bankrupt, dane and the other stockholders will:
a. be personally responsible for all remaining debts. b. lose their investment but nothing else. c. be entitled to full reimbursement of any investment losses. d. automatically qualify for federal reimbursement for any losses suffered by the firm.

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

You are president of a large corporation. at a typical monthly meeting, each of your vice presidents gives standard area reports. in the past, these reports have been good, and the vps seem satisfied about their work. based on situational approach to leadership, which leadership style should you exhibit at the next meeting?

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false