Which of the following statements is true? Prefered shares allow preferred shareholders to participate in the eamings growth of the company Preferred shareholders have the right to vote for the members of the board of directors. Both preferred and common shareholders have the right to buy and sell their shares at their own discretion. For a dividend to be paid, it must first be declared by the common shareholders. Question 2 Which of the following is a disadvantage of a sole proprietorship? Unlimited liability for the owner Easy transfer of ownership Easy to raise new capital Simplicity of decision making ABC Company's accounts payable has increased during the year. Which of the following is true? The increase in accounts pryable is a cach inflow that will appear in the investing section. The increase in accounts payable is a cash cutfow that will appeas in the operating section. The increase in accounts payable is a cash outflow that will appear in the finanding section. The increase in accounts payable is a cash inflow that will appear in the operating section. Which of the following is not a source of debt capital for a business? lswame of bonds Denand benk lain tong tem tetse paybble ksuance of petored sheres BB's Books has a bank loan for $50,000 with annual interest at 4%. BB's pays tax at 20%. What is B 's after interest? Loan amount Interest rate Interest expense Tax savings at 20% After tax cost