Question 1.1. (TCO A) In the United States, which of the following types of organization has the greatest revenue in total? (Points : 5) | Sole proprietorship C corporation S corporation Limited partnership |

Question 2.2. (TCO A) The one thing that makes a corporation different from the other forms of business ownership is (Points : 5) | legally, the corporation is the same as its owners. it requires all owners to share liability equally. it is a legally defined entity, completely separate from its owners. it protects small shareholders, allocating most of any liability to those who own more stock. |

Question 3.3. (TCO B) Which of the following would cause the present value of an annuity to increase? (Points : 5) | Reducing the number of payments. Increasing the interest rate. Decreasing the interest rate. Decreasing the liquidity of the payments. |

Question 4.4. (TCO B) In a TVM calculation, if incoming cash flows are positive, outgoing cash flows must be (Points : 5) | positive. negative. either positive or negative. It really doesn’t matter. stated in time units that are different from the time units in which the interest rates are stated. |

Question 5.5. (TCO G) If you were a manager of a company, which of the three right side components of the DuPont Identity would you want to increase and which would you want to decrease, other things being equal? Give a specific example for how to do that for each of the three. (Points : 20) I would like to increase asset turn over so that the ROE will be increase. Then I would like to decrease equity multiplier. For exampleWall-Mart ROE = 15.7/71.3 = 22% = 3.51% x 2.31 x 2.71Target ROE = 2.9/15.8 = 18.4% = 4.15% x 1.50 x 2.95Due to its lower