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Unformatted text preview: A) I only B) I and III only C) II only D) I, II, and III 4. A corporation’s board of directors: A) is selected by and can be removed by management. B) can be voted out of power by the shareholders. C) has a lifetime appointment to the board. D) is also elected by customers of the corporation. 5. “Double taxation” refers to: A) all partners paying equal taxes on profits. B) corporations paying taxes on both dividends and retained earnings. C) paying taxes on profits at the corporate level and on dividends at the personal level. D) the fact that marginal tax rates are doubled for corporations. 6. An example of a firm’s financing decision would include: A) acquisition of a competitive firm. B) how much to pay for a specific asset. C) the issuance of ten-year versus twenty-year bonds. D) whether or not to increase the price of its products....
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- Summer '09
- Finance, Corporation, Double taxation, current market value, help ensure managers