Choose the best answer. 1. Which of the following does not fall within the scope of Business (Corporate) Finance? A. B. C. D. Identifying "good" projects (capital budgeting) Determining the ideal mix of debt and equity (capital structure) Managing the firm's working capital Business Finance deals with all of the above. 2. In the General Motors example used in class, in one year the company profits by its depreciation expense. its . B. C. D. inflated; lowering deflated: increasing inflated: holding constant deflated, lowering 3. The profit maximization approach is criticized because it ignores A. B C. risk, cash flows, and the demand for the company stock risk, cash flows, and the timing of cash flows (time value of money). cash flows, timing of cash flows and the current level of risk free rate of interest. supply and demand conditions for the company's stock