1. Which of the following is not true for a business formed as a corporation? a. Owners have unlimited liabily b. Double laxation c. Easy access to capital 2. The value of a stock price should decrease when the expectation of future cash flows: the probability of recelving future cash flows and the length of time until cash flows received a. decreases; increases; decreases b. decreases, increases; increases c. decreases decreases, increases d. decreases, decreases; decreases e. increases, decreases: decreases 3. The average tax rate is always the marginal tax rate. a. lessthan b. less than or equal to c greater than d. greater than or equal to 4. Which of the basic financial statements is best used to answer the question "How much were sales and what were the expenses for the year? a. Balance sheet b. Statement of retained earnings (stockholder's equity) c. Income statement d. Cash flow statement 5. A \& K Co. expects to have earnings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax rate about 33%. For every additional dolar of revenue, A \& K's taxes will: a. increase by 39 cents. b. fall by 39 cents. c. be unaffected. d. increase by 33 cents. e. fall by 33 cents 6. A \& K Co, expects to have eamings before taxes of $250,000 to $300,000. The company's marginal tax rate is 39% and its average tax rate about 33%. For every additional dollar of dividends, A & K's taxes wil: a. increase by 39 cents. b. fall by 39 cents. c. be unaffected. d. Increase by 33 cents. e. fall by 33 cents