1.Which one of the following is a means by which shareholders can replace company


A. stock options

B. promotion

C. Sarbanes-Oxley Act

D. agency play

E. proxy fight

2.Decisions made by financial managers should primarily focus on increasing which one of the


A. size of the firm

B. growth rate of the firm

C. gross profit per unit produced

D. market value per share of outstanding stock

E. total sales

3.Which one of the following is the financial statement that shows the accounting value of a

firm's equity as of a particular date?

A. income statement

B. creditor's statement

C. balance sheet

D. statement of cash flows

E. dividend statement

4.Which one of the following is the financial statement that summarizes a firm's revenue and

expenses over a period of time?

A. income statement

B. balance sheet

C. statement of cash flows

D. tax reconciliation statement

E. market value report

5.The percentage of the next dollar you earn that must be paid in taxes is referred to as the

_____ tax rate.

A. mean

B. residual

C. total

D. average

E. marginal