Which of the following statements is incorrect? a. Residual cash flows is the cash remaining...
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Finance
Which of the following statements is incorrect?
a. Residual cash flows is the cash remaining after a firm has paid operating expenses and what it owes creditors and in taxes, the residual cash flows can be distributed to the owners as a cash dividend or by repurchasing some shares, or reinvested in the business.
b. All the answers are correct except one.
c. In a limited partnership one or more general partners have unlimited liability and actively manage the business, while each limited partner is liable for business obligations only up to the amount of capital he or she invested in the partnership.
d. Every firm has some debt because debt represents ownership in the firm.
e. The goal for financial managers is to make decisions that maximize the firm's stock pric
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