Capital structure decisions include: Any decision that affects the balance sheet of the rm. Determining the amount of short term assets to issue. Determining whether the rm should lease or buy some equipment. Evaluating the size of inventory to be kept on hand. Determining whether the rm should issue more shares. @@@ An agency problem is created when a financial manager A Agrees to a merger that is favoured by shareholders. B Refuses to borrow money when doing so will increase the value of the firm. C Agrees to pay bonuses based on the market value of the company stock. D Agrees to lower selling prices if doing so will increase the net profits. E None of the above statements describes an agency problem.Which of the following is correct? I. A corporation has unlimited liability on the part of shareholders. Il. A partnership ensures that managers will do what is best for shareholders. Ill. A sole proprietorship is the least complicated form of business. A I only. B Il only. C Ill only. D I and ll only. E I and Ill only.Which of the following is correct? A Firms do not take taxes into consideration when making financial decisions. For a Canadian corporation, equity financing has a tax advantage over debt financing. C The dividend tax credit encourages Canadian investors to invest in foreign firms rather than Canadian firms. D The marginal tax rate is more important for decision making than the average tax rate. E Corporations pay federal income taxes, but do not pay provincial income taxes