1. This subarea of finance is important for adapting to the global economy. A. investments B. financial management S, international finance D. financial institutions and markets 2. This subarea of finance involves methods and techniques to make appropriate decisions about what kinds of securities to own, which firms' securities to buy, and how to be paid back in the form that the investor wishes. A real markets B. investments C. financial management D. none of these Which of the following statements is incorrect? A. Partnerships have unlimited liability. B. Most sole proprietors raise money by borrowing from banks. C. An advantage of sole proprietorships is that the owner has complete control. D. S corporations are considered a hybrid organization. The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as A. Restricted earnings B. Venture capital C. Retained earnings D. Institutional investment 5. Which of the following personal decisions is NOT impacted by finance? A. Borrowing money to purchase cars or homes B. Making credit card payments G Making retirement decisions D. All of these are impacted by finance. 6. How do we calculate a company's operating cash flow? A. EBIT - taxes + depreciation B. EBIT - taxes - depreciation C. EBIT + taxes + depreciation D. EBIT -Sales 7. Holding all other things constant, which of the following represents a cash outflow? A. The company sells a machine. B. The company acquires inventory. C. The company receives a bank loan. D. The company increases accounts payable