1. Calculate net income from the following given data: sales = $135, cost of goods sold = $40, miscellaneous expenses = $35, depreciation = $20, interest expense = $20, tax rate = 34%. a. $13.20 b. $19.80 c. $20.00 d. $23.10 e. $42.90 2. Which of the following represents decisions regarding Capital structure for a firm? i. Amount of long-term debt to assume. ii. Cost of acquiring funds. iii. Current assets and liabilities. iv. Net working capital. a. and ii only b. ii and iii only C. iii and iv only d. i, ii, and iv only e. i, iii, and iv only 3. The treasurer and the controller of a corporation likely report to the: a. Board of directors. b. Chairman of the board. c. Chief executive officer. d. President. e. Vice president of finance 4. Who are some of the stakeholders of Enacra Inc.? i. Individuals and institutions who own Encara stock. ii. A bank to whom Encara owes money. iii. The government. iv. An individual who lives next door to and shops in an Encara plant. a. i and ii only b. iii and iv only c. i, ii, and iv only d. ii, iii, and iv only e. i, ii, iii, and iv 5. Which is the most important stakeholder of the following groups in terms of sentiments in the market for the company? a. Potential new shareholders. b. Existing shareholders. c. Current creditors. d. The CRA. e. Existing management 6. Dan Robertson is one of the owners of a firm which generated $25,000 in taxable income last year. Dan did not have to pay any personal tax on his share of the firm's income. Dan must be a partial owner of a: a. Sole proprietorship. b. General partnership. c. Limited partnership. d. Non-dividend paying corporation. e. Limited liability company. 7. Common characteristics between a sole proprietorship and a general partnership include: i. Method of taxation. ii. Limited life of business entity. iii. Personal liability. iv. Division of net profits. a. i and ii only b. i and iv only c. ii and iii only d. i, ii, and iii only e. i, iii, and iv only