Which of the following mechanisms helps to align management interests with those of shareholders?

a.	A well designed compensation package.
b.	An efficient managerial labor market.
c.	The Sarbanes-Oxley Act of 2002.
d.	All of the above.

______ 2. Assume the pre-tax profit of $50,000 has been earned by a business, and the owner/proprietor wants to withdraw all of the after-tax profit for personal use. Assume the tax rate for a C corporation is 33%, while the rate for a person is 25%. The after-tax earnings available under the corporate and proprietorship forms of business are:

a.	for a corporation, $25,125; for a proprietorship, $37,500.
b.	for a corporation, $24,090; for a proprietorship, $36,500.
c.	for either a corporation or a proprietorship, $36,500.
d.	for either a corporation or a proprietorship, $24,090.

______ 3. Galan Associates prepared its financial statements for 2013 based on the information below.

The company had cash of $1,350, inventory of $12,480, and accounts receivables

of $6,589. The company