E) None of the above 2) A personal liability of each partner in a general partnership is for: A) the total debts of the partnership, only when they were unaware of those debts. B) their fractional share of all partnership debts regardless of which partner incurred that debt. C) all personal and partnership debts incurred by any partner, even if they were unaware of those D) only the partnership debts that they personally created. E) None of the above 3) An LLC (limited liability company): A) will always be taxed like a corporation. B) provides limited liability for its owners irrespective of their conduct. C) prefers to be taxed as a corporation. D) is a combination between a partnership and a sole proprietorship. E) can be created for professional service firms. 4) The ultimate financial goal of a corporation is to maximize: A) value and its growth. B) current profits. C) market share. D) current dividends. E) none of the above 5) One of financial goals of a sole proprietorship? A) Minimize the market value of the equity B) Maximize the reliance on fixed costs C) Minimize net income given the current resources of the firm D) Maximize the tax impact on the proprietor E) Minimize long-term debt to optimal levels to reduce the risk to the owner 6) The Sarbanes-Oxley Act, which was enacted in 2002, has: A) increased the number of U.S. firms going public on foreign exchanges. B) increased senior management's involvement in the corporate annual report. C) increased the annual compliance costs of all publicly traded firms in the U.S. D) all of the above. E) none of the above. 1 5) One of financial goals of a sole proprietorship? A) Minimize the market value of the equity B) Maximize the reliance on fixed costs C) Minimize net income given the current resources of the firm D) Maximize the tax impact on the proprietor E) Minimize long-term debt to optimal levels to reduce the risk to the owner 6) The Sarbanes-Oxley Act, which was enacted in 2002, has: A) increased the number of U.S. firms going public on foreign exchanges. B) increased senior management's involvement in the corporate annual rep C) increased the annual compliance costs of all publicly traded firms in the D) all of the above. E) none of the above. 1