Question 16

A high inventory turnover ratio would be important to a company whose product has a high level of spoilage.

True

False

Question 14

The ultimate test of a firm's efficient use of its stockholders' money is its return on equity.

True

False

Question 13

In addition to raising money, the government uses the tax system to

		Promote a larger and more comprehensive government authority
		Incentivize desirable behavior on the part of taxpayers
		Support our position as the world's strongest nation
		Keep the nation growing as rapidly as possible Question 12 Both accounting and finance are concerned primarily with the creation of financial statements and their use as tools for evaluating the firm's future prospects. True False Question 6 The proprietorship form of organization gives the business owner the protection of limited liability True False