6. Agency issues with regards to management and shareholders can be addressed by? A) Paying managers big cash salaries ) Compensating managers with stock options that vest over time at higher prices CGiving management unlimited control in managing the business D) None of the above 7. Which of the following is TRUE regarding the attributes of a corporation A) Income earned is subject to double taxation when distributed to shareholders. B) Shareholders are subject to unlimited liability C) Transfer of ownership in a publicly traded corporation is very difficult. D) None of the above. 8. Which of the following is an example of a direct transfer of funds? A) You send money to a mutual fund company and they use the money to buy stocks B) You deposit your money in a bank, the bank loans out the money C) You loan money to your friend at a 6% rate of interest D) Goldman Sachs manages the IPO for Snap raising $2 billion from investors for the company 9. The major decisions (responsibilities) of the financial manager include which of the following? A) how a firm's day-to-day financial matters should be managed. B) how the firm should finance its assets. C) which productive assets the firm should employ D) all of the above. 10, A new 5-year $20,000 10% loan has annual payments of $5276. Calculate how much of the first payment of $5276 is comprised of interest: Remember Principal + Interest = Payment A) 5276- it is all interest B) 3276 C) 2000 D) 527.60 11. If a company has net income of $50 million and it pays out $25 million in dividends, which of the following is likely true? A) Retained earnings will increase. B) Retained earnings will decrease. C) Retained earnings will be unchanged D) none of the above as there is not enough information