"QUESTION 4 Fill in the Blank: The tax deductibility of expenses their after tax cost (assume a tax paying firm). O has no effect on O has an undetermined effect on o either increases or decreases, depending on whether it is for a sole proprietorship or a corporation QUESTION 44 In a reasonably efficient market, at the time of an announcement, market prices react to; O The announcement of new information that was unanticipated O The announcement of new information that was previously fully anticipated O Both of the other responses are correct i. e., both the announcement of new information that was previously fully anticipated, as well as information that was unanticipated O none of the other responses are correct, because market price movements are random QUESTION 45 Managerial stock options are an incentive for managers to act in the best interest of o stockholders o bondholders O government leaders O the public O banker QUESTION 46 generally the least liquid asset The_is a measure of liquidity which excludes o current ratio; accounts receivable o quick ratio; accounts receivable o current ratio; inventory o quick ratio; inventory none of the other responses are c orrect QUESTION 47 All of the following are advantages a corporation may have over a partnership or proprietorship, except which one? O Limited liability O Ease of transfer of ownership interest. O Elimination of double taxation o Ability to raise capital