11.When a company is looking for a new auditor in order to seek more lenient treatment on their accounting practices and control activities, this is known as __________.

Select one:

a. Auditor preference

b. Opinion shopping

c. Leniency

d. Problem solving

12.Research and evidences show that a company might become a takeover target easier if it exhibits all of the following features except:

Select one:

a. In a heightened merger activity industry

b. None of the above

c. Weak cash flow

d. Weak performance

e. Lower debt levels

13.In theory, a change of control only makes economic sense when:

Select one:

a. Shareholders approve the decision

b. The value of the firm to new owners minus associated transaction costs is greater than the value of the firm to current owners

c. Dividends and rates of return decline consistently for more years than three years

d. The BOD shows leniency towards management during low performance

e. The company is not performing to industry standards

14.Which of the following is not a disadvantage to having a family owned firm?

Select one:

a. Non-diversified investments

b. Self-fulfilling management

c. Excessive compensation

d. Concentrated investors

15.In general, family owned firms typically perform __________ when compared to firms with diversified ownership.

Select one:

a. Better

b. Worse

c. Can't compare

d. As well