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
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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