1. Which of the following statements is NOT true?

	1.	The choice of debt versus equity to finance a new project (the treasury function) affects both the risk of the firm through its impact on financial leverage and the firms cash flows through its tax position
	2.	Two of the key rights of shareholders are the ability to vote to elect members of the board of directors and to attend annual meetings
	3.	Share price represents a feedback loop to management regarding how analysts and investors are assessing their performance
	4.	1) The fiduciary responsibility of the board of directors is to act honestly and to ensure that managements strategies are implemented