Question 1 1 pts Which of the following statements is incorrect? Capital budgeting decisions is about identifying the productive assets the firm should buy. O All the answers are correct except one. The decision-making process for the firm to purchase productive assets, long-term assets, is called capital budgeting. Owners of corporations have unlimited liability because corporations are not legal persons that take actions in their own names, but in the names of individual owners. One of the disadvantages of the sole proprietorship is related to the fact that the amount of equity capital that can be raised to finance the business is limited to the owner's personal wealth. Question 2 1 pts Which of the following statements is incorrect? Agency costs are the costs incurred because of conflicts of interest between a principal and an agent. Most large companies do not prefer to operate as public corporations because large amounts of capital cannot be raised in public markets at a relatively low cost. A firm's capital, also known as productive assets, generate most of the cash flows for the firm. All the answers are correct except one. The risk manager monitors and manages the firm's risk exposure in financial and commodity markets and the firm's relationships with insurance providers. Which of the following statements is correct? All the answers are correct. Dow Jones Industrial average (DJIA) is a price index that measures the change in prices of a market basket of goods and services that a typical consumer purchases. Secondary markets are markets where securities are resold and these secondary markets provide the means for investors to sell their securities to other investors. In primary markets, brokers are market specialists who bring buyers and sellers together when a sale takes place, and they execute the transaction for their client and are compensated for their services without a commission fee. In contrast to secondary markets, no new money goes into the firm when a primary market transaction takes place. Question 9 1 pts Johnson & Bros Corporation has depreciation expenses of $28,100 and interest expenses of $16,300 for the year. The current assets increased by $14,200 and the net LTA increased by $11,800. What is the cash flows to invested in) Long Term Assets, CFLTA, for the year? $16,300 O $28,100 O $39,900 $26.000 $11.800