d) the employees 13. When a firm with fixed costs achieves a percentage increase in revenue due to more sales, the resulting percentage change in profit is typically the percentage change in revenue: a) greater than b) less than c) equal to 14. If two securities promise the same cash flow at a specific future date, the one with the higher price must rate of discount: a) a higher b) a lower c) the same 20. Which of the following is true of Accounts Payable? a) They are an asset for the company. b) They occur when a company sells fewer units than it produces. c) They reduce a company's net change in cash. d) They are a form of passive debt. 21. Suppose a company enjoys an increase in revenue due entirely to an increase in the price of its product. Which of the following increases as a result? Choose Two a) variable costs b) fixed costs c) after-tax profit d) profits tax e) interest expense 22. Which of the following is correct? Choose two a) If an owner of shares in a company sells some shares to a person who does not own any. It is a primary transaction. b) Ian owner of shares in a company sells some shares to another existing owner, it is a secondary transaction. c) a company sells shares to a person who does not own any, it is a primary transaction. d) If a company sells shares to a person who already owns shares, it is a secondary transaction. 23. Mutual Fund ABC purchased shares in stocks X, Y and Z. Investor invests in ABC. Who receives the dividends from X,Y & Z? a) ABC b) I c) XYZ d) all the above