Question 23
1.
Which one of the following has nearly the same meaning as free cash flow?
Answer
Net income
Cash flow from assets
Operating cash flow
Cash flow to shareholders
Addition to retained earnings
Question 29
1.
A corporation:
Answer
is ultimately controlled by its board of directors.
is a legal entity separate from its owners.
is prohibited from entering into contractual agreements.
has its identity defined by its bylaws.
has its existence regulated by the rules set forth in its charter
Question 31
1.
Which one of the following is the tax rate that applies to the next dollar of taxable income that a firm earns?
Answer
Average tax rate
Variable tax rate
Marginal tax rate
Absolute tax rate
Contingent tax rate