True or False questions:

1. Capital Budgeting is a process to determine what long term investments projects the business should take on

2. A firm selling its stock to raise money is not an example of equity financing

3. Working capital management answers the question how does a firm manage its day to day finances

4. Three forms of business organizations include (1) sole proprietorship, (2) partnership,and (3) Corporations

5. A sole proprietorship has the highest rate of failure among the three organizational forms

6.Partnerships can consist of only one owner

7. One of the disadvantages of corporate ownership of a business is that it is subject to a form of double taxation

8.In terms of corporate organizational structure, the stockholders of a firm are accountable to the board of directors

9. The Sarbanes Oxley Act was legislation driven by corporate scandals

10. Into terms of corporate management, the stockholders of a firm hire managers, (for example a company President) as agents to run accompany