B. MULTIPLE CHOICE QUESTIONS For each question, enter the letter of the best response on the blank preceding the question 17. Finance is concerned with 1. how firms raise money from investors. 2. how firms invest money to seek a profit 3. whether to re-invest profits into the firm or distribute them as dividends to shareholders. 4. A and B and C 18. A key decision rule for Financial Managers is to only take actions that are expected to 1. increase the firm's "Net Income." 2. increase the firm's Cash Flow 3. Increase the firm's dividend per share. 4. increase the market value of the firm's stock price per share 19. is the system of rules, processes, and laws used to direct and control a corporation 1. Corporate Governance 2. Breakeven Analysis 3. Shareholders' Equity 4 Accrual Accounting 20. A security that represents ownership interest in a corporation is 1. corporate bonds 2. stock 3. commercial paper. 4. Treasury bills. I ili TE SE 21. Each of the following is a weakness of the "Partnership" form of business ownership EXCEPT 1. owners have unlimited liability and may have to cover the debts of the other partners. 2. the Partnership is dissolved when a partner dies. 3. the firm's borrowing power is enhanced by having more than one owner. 4. it is difficult to liquidate or transfer a partnership. I! " HIT ... 22. After January 1, 2018. per the Tax Cuts and Jobs Act: 5 of 10 1. proprietorships and partnerships are still taxed according to a revised progressive tax rate structure 2 corporations are taxed at a flat rate of 21% 3. corporations with Pre-Tax Earnings of $100,000 or less are exempt from federal taxes. 4. A and B and C. 5. A and B I! " HIT ... 22. After January 1, 2018. per the Tax Cuts and Jobs Act: 5 of 10 1. proprietorships and partnerships are still taxed according to a revised progressive tax rate structure 2 corporations are taxed at a flat rate of 21% 3. corporations with Pre-Tax Earnings of $100,000 or less are exempt from federal taxes. 4. A and B and C. 5. A and B