Question 1: Which one of the following statements is incorrect? (1 Point) Financial markets can be classified as either money markets or capital markets. Secondary markets provide the means for transferring ownership of corporate securities. Firms must meet certain minimum criteria to be listed on an exchange in Canada. The original sale of securities by investors are made in primary markets. Financial markets bring together the buyers and sellers of debt and equity securities. Question 2: The control of a firm ultimately rests with because (1 Point) Shareholders; they work in unison with a firm's executives. O Bondholders; they clect the management who lead the company. O Government agencies and regulatory bodies; they work in unison with a firm's board of directors. O Executives, they oversee a firm's strategic planning Shareholders; they clect the board of directors, who then hire and fire management. Question 3: Which of the following is correct? (1 Point) A sole proprietorship is the most complicated form of business A partnership must have drafted a formal written agreement to legally operate in Canada O A sole proprietorship has unlimited liability on the part of the owner. O A corporation ensures that managers will do what is best for shareholders. A corporation has unlimited liability. Question 4: Which of the following is correct? (1 Point) Net income is either paid out as dividends or subtracted from the retained earrings of the firm. O Net income is equivalent to the operating cash flow of a firm O Depreciation increases the net income of a firm. Taxes will increase the amount of profit incurred by a firm with positive taxable income. Inberest expense decreases the taxes owed by a firm