QUESTION 5 Identify the correct statement about business ethics. a. Good business ethics decrease shareholders' trust in the company. b. Good business ethics result in recurring fines and legal expenses. Good business ethics reduce the economic viability of the communities where these firms operate. O d. Good business ethics attract business from customers who appreciate and support specific political parties. e. Good business ethics attract and keep employees of the highest caliber. QUESTION 8 Compared to corporations, what is the primary disadvantage of partnerships as a form of business organization? O a. Partnerships generally are more complex to form (start up) than corporations. b. The tax rates applied to partnerships are higher than the tax rates applied to corporations Any dividends paid to the owners of a partnership business are taxed twice, once at the partnership level and once at O the personal, or individual level. d. Partnerships have unlimited lives whereas corporations do not The owners of a partnership, that is, the partners, have unlimited liability when it comes to business obligations whereas the owners of a corporation have limited liability. QUESTION 9 The success of financial institutions depends on a. the understanding of the factors that cause interest rates and other retums in the financial markets to rise and fall b. the awareness of the shareholders regarding the regulations that affect public corporations c. the expectations of long-term investors in the company d. the prior knowledge of the decisions that public corporations make concerning their cash flows e the environmentally responsible behavior of the shareholders of corporations QUESTION 13 If the opportunity cost rate is 8 percent, compounded annually, what is the present value of $8,200 due to be received in 12 years? a. $3,688 b. $3,256 O c. $3,068 d. $3,552 e. $3,854