SectionI: Multiple choice questions (2.5 points each) I. Which one of the following statements concerning a sole proprietorship is correcr? A. A sole proprietorship is designed to protect the personal assets of the owner B. The profits of a sole proprietorship are subject to double taxation. C. The owner of a sole proprietorship is personally responsible for all of the company's debts. are very few sole proprietorships remaining in the U.S. today E. A sole proprietorship is structured the same as a limited liability company. 2. Which one of the following statements is correct? A. A general partnership is legally the same as a corporation. B. Both sole proprietorship and partnership income is taxed as individual income. C. Partnerships are the most complicated type of business to form. D. All business organizations have bylaws E. Oaly firms organized as sole proprietorships have limited lives 3. Which one of the following best illustrates that the management of a firm is adhering to the goal of financial management? A. increase in the amount of the quarterly dividend B. decrease in the per unit production costs C. increase in the number of shares outstanding D. decrease in the net working capital E. increase in the market value per share 4. Which one of the following is the financial statement that summarizes a firm's revenue and expenses A. income statement B. balance sheet C. statement of cash flows D. tax reconciliation statement E. market value report 5. Which of the following help convince managers to work in the best interest of the stockholders? Assume there are no golden parachutes. I. compensation based on the value of the stock Il. stock option plans IlI. threat of a company takeover IV. threat of a proxy fight A. I and II only B. IlI and IV only C. I, II, and Ill only D. I, III, and IV only E. I, I1, IlI, and IV Page 2 of 1