John Jackson purchases a house with a 30 year fixed mortgage with 360 equal monthly payments of $1,800. Which of the following statements best describes the behavior over time of the components of equal mortgage payments of $1,800? a. The proportion of interest expense to payment of principal remains the same b. Interest expense increases and payment of principal decreases. c. Payment of principal increases and interest expense decreases. d. Both payment of principal and interest expense decrease. 16. 17. A successful grocery store would probably have a. a low inventory turnover. b. a high inventory turnover. c. zero profit margin. d. low volume. 18. Which one of the following would not be considered an advantage of the corporate form of organization? a. Limited liability of owners b. Separate legal existence c. Continuous life d. Government regulation Page 3 of 11