A Subchapter S corporation must be a domestic corporation.

The term  flattened management hierarchies  refers to

A) renewed emphasis on ethics.
B) fewer levels of management.
C) more levels of management.
D) less individual decision making and communication.

In the market for used motorcycles there are high-quality motorcycles and low-quality motorcycles. Potential buyers cannot determine prior to purchase whether the motorcycle is high quality or low quality. Which of the following statements best describes what is likely to happen in this market?

A) The price of a used motorcycle will be very close to the value of a high-quality motorcycle, which will encourage people to sell high-quality motorcycles.
B) The price of a used motorcycle will be between the value of a high-quality and low-quality motorcycle. This will encourage people to withdraw high-quality motorcycles from the market.
C) This is an example of adverse selection, as the buyer will have more information about the quality of the used motorcycle than the seller will.
D) Over time the price of a used motorcycle will increase in this market, as there is more of an incentive for owners of high-quality motorcycles to sell than owners of low-quality motorcycles.

Which of the following statements is true of text messaging?

A) It cannot be used to send messages from a cellphone to a computer.
B) It puts less premium on conciseness than email.
C) It is a refinement of computer instant messaging.
D) It cannot be used for business purposes.

The presence of personal taxes completely eliminates the benefits of debt financing.

Pension plans must meet complex rules to retain their tax-advantaged status.These rules include all of the following except:

A) The plan must not discriminate in favor of highly compensated employees.
B) Employee and employer contributions must fully vest within five years.
C) The plan must adequately cover rank-and-file employees.
D) The plan must be established for the exclusive benefit of employees and their beneficiaries.

The paradox of thrift suggests that

A) "a penny saved is a penny earned."
B) as consumption increases,saving decreases.
C) the less you pay,the lower the satisfaction.
D) attempts to save more may actually reduce total saving.