1- The owners of a limited liability company generally prefer:

being taxed like a corporation with liability like a partnership.

having liability exposure similar to that of a general partner.

being taxed personally on all business income.

being taxed like a corporation.

having liability exposure similar to that of a sole proprietor.

2 Financial managers primarily create firm value by:

lowering the earnings per share.

maximizing current dividends.

maximizing current sales.

investing in assets that generate cash in excess of their cost.

increasing the firms market share.

3- What is the future value of $910 a year for 5 years at a 6 percent interest?

$4,823.00

$5,129.75

$3,833.00

$6,180.35

$4,629.05

4

First City Bank pays 6 percent simple interest on its savings account balances, whereas Second City Bank pays 6 percent interest compounded annually.

If you made a $66,000 deposit in each bank, how much more money would you earn from your Second City Bank account at the end of 10 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Difference in accounts 5 What is the future value of $3,088 invested for 10 years at 4.50 percent compounded annually? $4,795.57 $1,948.55 $4,811.10 $4,780.04 $4,507.84

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