1. Finance can be defined as

   a. the system of debits and credits

   b. the science of the production, distribution , and consumption of wealth

   c. the art and science of managing money

   d. the art of merchandising products and services in a free market economy

2 points

Question 2

1. 2. Which of the following legal forms of organization is least expensive to organize?

   a. Sole Proprietorships

   b. Partnerships

   c. Corporations

   d.Privatebusiness

2 points

Question 3

1. 3. The _____ rate of interest creates equilibrium between the supply and the demand for investment funds.

   a. nominal

   b. real

   c. risk-free

   d. inflationary