1. Which of the following would be the greatest advantage of forming a corporation?

Agency Management

Corporate Charters

Limited Liability

Profit

2. There are a number of measures of financial risk. The measure for risk that is used in the capital asset pricing model is:

alpha.

beta.

the standard deviation of a firm's cash flows.

the standard deviation of a firm's stock returns.

3. Darwin Davis will put $1000 into his retirement account at the end of each year for 40 years. How much money will Darwin have in his account at the end of the 40th year? Assume that the account pays 12% interest compounded annually and round your answer to nearest $1000.

"$6,000 "

"$45,000 "

"$93,000 "

"$767,000 "

4. "If you wish to know the amount that you must deposit today in a bank that pays 3% interest, compounded annually in order to accumulate $15,000 in 6 years to pay for your wedding reception, you need to find:"

present value of a lump sum

present value of an annuity

future value of a lump sum

future value of an annuity

5. In which of the following forms of organizations can owners freely transfer their ownership shares?

corporations

general partnerships

limited partnerships

both A and C