1. Which of the following help convince managers to work in the best interest of the stockholders?

I. compensation with sensitivity to performance and stock value

II. allow managers to sit on the board

III. threat of removal by the board

Group of answer choices

I

I, II, III

II, III

I, III

2. S-Corp and LLC are different from C-Corp in that

Group of answer choices

They allow separation of ownership and management

They incur a lower cost in raising capital

They escape the double taxation of business profits.

Business owners are subject to limited liabilities.

3. At the beginning of the year, a firm has current assets of $380 and current liabilities of $210. At the end of the year, the current assets are $430 and the current liabilities are $250. What is the change in net working capital?

Group of answer choices

$40

$50

$0

-$50

$10