called a(n):6) 12) 6) A business created as a distinct leval entity and treated as a legal person is called an): A) unlimited liability company, B) general partnership C) limited partnership D) corporation E) sole proprietorship 7) One disadvantage of the corporate form of business ownership is the: A) limited liability of its shareholders for the firm's debts. B) firm's ability to issue additional shares of stock. C) firm's greater ability to raise capital than other forms of ownership. D) firm's potential for an unlimited life. E) double taxation of distributed profits. 8) 8) Which one of the following best states the primary goal of financial management? A) Minimize operational costs while maximizing firm efficiency B) Maximize current dividends per share C) Maximize the current value per share D) Maintain steady growth while increasing current profits E) Increase cash flow and avoid financial distress responsible for 9) 9) The Sarbanes-Oxley Act of 2002 holds a public company's the accuracy of the company's financial statements. A) external legal counsel B) internal auditors C) internal legal counsel D) managers E) Securities and Exchange Commission agent 10) 10) The percentage of the next dollar you earn that must be paid in taxes is referred to as the tax rate. A) residual B) marginal C) mean D) average E) total 11) A firm has $680 in inventory, $2,140 in fixed assets, $210 in accounts receivables. $250 in accounts payable, and $80 in cash. What is the amount of the net working capital? A) $2,860 B) S970 C) $3,110 D ) $640 E) $720 11)