Correct answers without supporting calculations are graded $0.$

If you use formula write the formula and then place the numbers and show your calculations If you use a financial calculator show the key presses. One A$4$ page of formula is permitted.

Please answer $14$ multiple choice and $2$ short answer questions

Which of the following types of firms does NOT have limited liability?

A$)$ Corporations

B$)$ Limited partnerships

C$)$ Sole proprietorships

D$)$ None of the choices is correct

E$)$ All of the choices are correct

What is the major advantage corporations have over other business entities?

A$)$ All of the mentioned choices are advantages that a corporation has over other business forms.

B$)$ A corporation is treated as a separate legal entity for tax and legal purposes only.

C$)$ A corporation's shares can be freely sold to the public.

D$)$ It is easier for a corporation to raise capital than other forms of businesses.

E$)$ None of the mentioned choices is an advantages that a corporation has over other business forms.

Whose interests should a financial manager consider paramount when making a decision?

A$)$ The employees and associated stakeholders who are employed by the company

B$)$ The public who consume the company's goods and services

C$)$ The senior management and associated colleagues at the executive level within the company

D$)$ The stockholders who have risked their money to become owners of the company

E$)$ Government tax offices

Which of the following is NOT one of the financial statements that must be produced by a public company?

A$)$ Statement of shareholder equity

B$)$ The statement of cash flows

C$)$ The income statement

D$)$ The statement of activities

E$)$ The balance sheet

Which of the following best describes why the left and right sides of a balance sheet are equal?

A$)$ The left and right side can be unequal sometimes

B$)$ By accounting convention, the assets of a company must be equal to the liabilities of that company.

C$)$ By definition, the assets plus the liabilities will be the same as the stockholders equity.

D$)$ The assets must equal liabilities plus stockhoider's equity.

E$)$ In a properly run business, the value of liabilities will not exceed the assets held by the company.