Which of the following statements is incorrect? All the answers are correct except one. The most important responsibilities of the operations officer (OO) are to set the strategic direction of the firm and see that the management team executes the strategic plan because OO is the top officer of the firm. One of the disadvantages of the sole proprietorship is related to the fact that the amount of equity capital that can be raised to finance the business is limited to the owner's personal wealth. The chief executive officer (CEO) reports directly to the board of directors, which is accountable to the company's stockholders. How a firm is financed with debt and equity affects the value of the firm because the mix between debt and equity affects the taxes the firm pays and the probability that the firm will go bankrupt