Question 23

1.

Which one of the following has nearly the same meaning as free cash flow?

Answer

		Net income
		Cash flow from assets
		Operating cash flow
		Cash flow to shareholders
		Addition to retained earnings

Question 29

1.

A corporation:

Answer

		is ultimately controlled by its board of directors.
		is a legal entity separate from its owners.
		is prohibited from entering into contractual agreements.
		has its identity defined by its bylaws.
		has its existence regulated by the rules set forth in its charter

Question 31

1.

Which one of the following is the tax rate that applies to the next dollar of taxable income that a firm earns?

Answer

		Average tax rate
		Variable tax rate
		Marginal tax rate
		Absolute tax rate
		Contingent tax rate