A$ %&E"&'E( %) )'$A$C'AL CHA !E" # MA$A*EME$!

(Difficulty Levels: Easy, Easy/Medium, Medium, Medium/Hard, and Hard)

Note to Professors: We designated most of these questions as being MEDIUM. However, their diffi u!t" as seen b" students wi!! de#end on $%& what was dis ussed in !ass and $'& how !ong students have to answer the questions. If time is not an issue, then man" of the questions shou!d be !assified as E()*, but under e+am onditions with time #ressure, the" might be regarded as being H(,D. )o, onsider the amount of time students have when se!e ting questions for an e+am. Multiple Choice: Conceptual
Firm organization
1

Answer: e

EASY

Which of the following statements is CORRECT? a. One of the disadvantages of incorporating your business is that you become sub ect to liabilities in the event of ban!ruptcy. b. "ole proprietorships are sub ect to more regulations than corporations. c. #n any partnership$ every partner has the same rights$ privileges$ and liability e%posure as every other partner. d. Corporations of all types are sub ect to the corporate income ta%. e. "ole proprietorships and partnerships generally have a ta% advantage over corporations.

Firm organization
&

Answer: c

EASY

Which of the following statements is CORRECT? a. One of the advantages of the corporate form of organi'ation is that it avoids double ta%ation. b. #t is easier to transfer one(s ownership interest in a partnership than in a corporation. c. One of the disadvantages of a sole proprietorship is that the proprietor is e%posed to unlimited liability. d. One of the advantages of a corporation from a social standpoint is that every stoc!holder has e)ual voting rights$ i.e.$ *one person$ one vote.+ e. Corporations of all types are sub ect to the corporate income ta%.

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Firm organization
,

Answer: a

EASY

Which of the following statements is CORRECT? a. One advantage of forming a corporation is that e)uity investors are usually e%posed to less liability than in a partnership. b. Corporations face fewer regulations than sole proprietorships. c. One disadvantage of operating a business as a sole proprietor is that the firm is sub ect to double ta%ation$ at both the firm level and the owner level. d. #t is generally less e%pensive to form a proprietorship than a corporation because$ with a proprietorship$ e%tensive legal documents are re)uired. e. #f a partnership goes ban!rupt$ each partner is e%posed to liabilities only up the amount of his or her investment in the business.

Firm organization
-

Answer: a

EASY

Cheers #nc. operates as a partnership. .ow the partners have decided to convert the business into a corporation. Which of the following statements is CORRECT? a. Cheers( shareholders /the e%0partners1 will now be e%posed to less liability. b. Cheers will now be sub ect to fewer regulations. c. 2ssuming Cheers is profitable$ none of its income will be sub ect to federal income ta%es. d. Cheers( investors will be e%posed to less liability$ but they will find it more difficult to transfer their ownership. e. Cheers will find it more difficult to raise additional capital.

Firm organization
3

Answer: c

EASY

Which of the following statements is CORRECT? a. Corporations generally face fewer regulations than sole proprietorships. b. Corporate shareholders are e%posed to unlimited liability. c. #t is usually easier to transfer ownership in a corporation than it is to transfer ownership in a sole proprietorship. d. Corporate shareholders are e%posed to unlimited liability$ but this factor is offset by the ta% advantages of incorporation. e. There is a ta% disadvantage to incorporation$ and there is no way any corporation can escape this disadvantage$ even if it is very small.

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Chapter 1: An Overview of Financial Management

Corporate form
4

Answer: e

EASY

Which of the following could e%plain why a business might choose to operate as a corporation rather than as a sole proprietorship or a partnership? a. Corporations generally face fewer regulations. b. 5ess of a corporation(s income is generally sub ect to ta%es. c. Corporate shareholders are e%posed to reduced liability$ but this factor is offset by the ta% advantages of incorporation. d. Corporate investors are e%posed to unlimited liability. e. Corporations generally find it easier to raise capital.

Corporate form
6

Answer: a

MEDIUM

Which of the following statements is CORRECT? a. One drawbac! of forming a corporation is that it sub ects the firm to additional regulations. b. One drawbac! of forming a corporation is that it sub ects the firm(s investors to increased personal liabilities. c. One drawbac! of forming a corporation is that it ma!es it more difficult for the firm to raise capital. d. One advantage of forming a corporation is that it sub ects the firm(s investors to fewer ta%es. e. One disadvantage of forming a corporation is that this ma!es it more difficult for the firm(s investors to transfer their ownership interests.

Goal of firm
7

Answer: d

MEDIUM

The primary operating goal of a publicly0owned firm interested in serving its stoc!holders should be to a. b. c. d. 8a%imi'e its e%pected total corporate income. 8a%imi'e its e%pected E9". 8inimi'e the chances of losses. 8a%imi'e the stoc! price per share over the long run$ which is the stoc!(s intrinsic value. e. 8a%imi'e the stoc! price on a specific target date.

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Conflicts of interest
:

Answer: d

MEDIUM

Which of the following statements is CORRECT? a. Compensating managers with stoc! options will do nothing to help eliminate potential conflicts between stoc!holders and managers. b. Restrictions can be included in credit agreements$ but these restrictions will do nothing to protect bondholders from conflicts of interest between them and the firm(s managers and stoc!holders. c. The threat of ta!eovers reduces conflict of interest problems$ but only between bondholders and stoc!holders. d. Compensating managers with stoc! options can help reduce conflicts of interest between stoc!holders and managers$ but if the options are all e%ercisable on a specific date in the near future$ this can motivate managers to deceive stoc!holders. e. Conflicts would not e%ist if the lead agency$ the "ecurity and E%change Commission$ were abolished.

Conflicts of interest
1;

Answer: a

MEDIUM

Which of the following actions would tend to reduce conflicts of interest between stoc!holders and bondholders? a. #ncluding restrictive covenants in the company(s bond indenture /which is the contract between the company and its bondholders1. b. Compensating managers with more stoc! options and less cash income. c. The passage of laws that ma!e it harder for hostile ta!eovers to succeed. d. 2 government regulation that banned the use of convertible bonds. e. <ave the firm use only long0term debt$ e.g.$ debt that matures in ,; years or more rather than in less than one year.

Conflicts of interest
11

Answer: b

MEDIUM

Which of the following actions would be most li!ely to reduce potential conflicts of interest between stoc!holders and managers? a. 9ay managers large cash salaries but give them no stoc! options. b. Change the corporate charter so as to ma!e it easier for outside investors to ac)uire a controlling interest in the firm. c. =eef up the restrictive covenants in the firm(s debt agreements. d. Eliminate a re)uirement that members of the board of directors must hold a high percentage of their personal wealth in the firm(s stoc!. e. >or a firm that compensates managers with stoc! options$ reduce the time before options are vested$ i.e.$ the time before options can be e%ercised and the shares received can be sold.

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Chapter 1: An Overview of Financial Management

Conflicts of interest
1&

Answer: e

MEDIUM

Which of the following actions would be li!ely to reduce conflicts of interest between stoc!holders and managers? a. Congress passes a law that severely restricts hostile ta!eovers. b. 8anagerial compensation is changed so that managers receive larger cash salaries but fewer long0term options to buy shares of stoc!. c. The company changes the way e%ecutive stoc! options are handled$ with all options now being vested after only & years rather than having &;? of the options awarded be vested every & years over a 1;0year period. d. The company(s outside auditing firm is offered a lucrative consulting contract with the company. e. The board of directors becomes more vigilant in its oversight of the company(s management.

Managerial incenti es
1,

Answer: d

MEDIUM

Which of the following mechanisms would be most li!ely to help motivate managers to act in the best interest of shareholders? a. b. c. d. @ecrease the use of restrictive covenants in bond agreements. Ta!e actions that reduce the possibility of a hostile ta!eover. <ave the board of directors allow managers greater freedom of action. #ncrease the proportion of e%ecutive compensation that comes from stoc! options and reduce the proportion that is paid as cash salaries. e. Eliminate a re)uirement that members of the board of directors have a substantial investment in the firm(s stoc!.

Managerial incenti es
1-

Answer: c

MEDIUM

Which of the following actions would be li!ely to encourage a firm(s managers to ma!e decisions that are in the best interest of shareholders? a. The percentage of e%ecutive compensation that comes in the form of cash is increased and the percentage coming from long0term stoc! options is reduced. b. The state legislature passes a law that ma!es it more difficult to successfully complete a hostile ta!eover. c. The percentage of the firm(s stoc! that is held by institutional investors such as mutual funds$ pension funds$ and hedge funds rather than by small individual investors rises from 1;? to 4;?. d. The firm(s founder$ who is also president and chairman of the board$ sells :;? of her shares. e. The firm(s board of directors gives the firm(s managers greater freedom to ta!e whatever actions they decide to ta!e.

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Miscellaneo!s concepts
13

Answer: c

MEDIUM

Which of the following statements is CORRECT? a. 2 good goal for a firm(s management is ma%imi'ation of e%pected E9". b. 8ost business in the A.". is conducted by corporations$ and corporations( popularity results primarily from their favorable ta% treatment. c. One e%ample of an agency relationship is the one between stoc!holders and managers. d. Corporations and partnerships have an advantage over proprietorships because a sole proprietor is e%posed to unlimited liability$ but the liability of all investors in the other types of businesses is more limited. e. >irms in highly competitive industries are more li!ely to consciously e%ercise *social responsibility+ than are firms in oligopolistic industries.

Miscellaneo!s concepts
14

Answer: d

MEDIUM

Which of the following statements is CORRECT? a. One disadvantage of organi'ing a business as a corporation rather than a partnership is that the e)uity investors in a corporation are e%posed to unlimited liability. b. Asing restrictive covenants in debt agreements is an effective way to reduce agency conflicts between stoc!holders and managers. c. 8anagers generally welcome hostile ta!eovers since the company see!ing to do the ta!ing over generally offers a price for the stoc! that is higher than the price before the ta!eover action started. d. The entrenched managers of established$ stable companies sometimes attempt to get their state legislatures to impose rules that ma!e it more difficult for raiders to succeed with hostile ta!eovers. e. The entrenched managers of established$ stable companies sometimes attempt to get their state legislatures to remove rules that ma!e it more difficult for raiders to succeed with hostile ta!eovers.

Miscellaneo!s concepts
16

Answer: b

MEDIUM

Which of the following statements is CORRECT? a. =ond covenants are a good way to resolve agency conflicts between stoc!holders and managers. b. The bid price in a hostile ta!eover is generally above the price before the ta!eover attempt is announced because otherwise the ta!eover attempt would probably fail. c. The bid price in a hostile ta!eover is generally below the price before the ta!eover attempt is announced because ta!eover targets are generally not very well managed companies. d. Ta!eovers are more li!ely to be attempted if the target firm(s stoc! price is above its intrinsic value. e. The efficiency of the A.". economy would probably be increased if hostile ta!eovers were absolutely forbidden.

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Chapter 1: An Overview of Financial Management

Miscellaneo!s concepts
17

Answer: a

MEDIUM

Which of the following statements is CORRECT? a. <ostile ta!eovers are most li!ely to occur when a firm(s stoc! is selling below its intrinsic value because of its poor management. b. The efficiency of the A.". economy would probably be increased if hostile ta!eovers were absolutely forbidden. c. <ostile ta!eovers are most li!ely to occur when a firm(s stoc! sells at a price above its intrinsic value because its management has been issuing overly optimistic statements about its li!ely future performance. d. #n general$ it is more in bondholders( interests than stoc!holders( interests for a firm to shift its investment focus away from safe$ stable investments and into ris!y investments$ especially those that involve primarily research and development. e. "toc!holders in general would be better off if managers concealed good events and therefore caused the price of the firm(s stoc! to sell at a price below its intrinsic value.

Miscellaneo!s concepts
1:

Answer: d

MEDIUM

Which of the following statements is CORRECT? a. One disadvantage of operating as a corporation rather than as a partnership is that corporate shareholders are e%posed to more personal liability than partners. b. Relative to sole proprietorships$ corporations generally face fewer regulations$ and they also find it easier to raise capital. c. =ondholders should generally be more willing than stoc!holders to have managers invest in ris!y pro ects with high potential returns as opposed to safer pro ects with lower e%pected returns. d. "toc!holders should generally be more willing than bondholders to have managers invest in ris!y pro ects with high potential returns as opposed to safer pro ects with lower e%pected returns. e. There is no good reason to e%pect its stoc!holders and bondholders to react differently to the types of assets that a firm invests in.

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Miscellaneo!s concepts
&;

Answer: b

MEDIUM

Which of the following statements is CORRECT? a. "ince in ban!ruptcy they must be paid in full before stoc!holders receive anything$ corporate bondholders generally prefer to see corporate managers invest in high ris!Bhigh return pro ects rather than low ris!Blow return pro ects. b. "ince bondholders receive fi%ed payments$ they do not share in the gains if ris!y pro ects turn out to be highly successful$ but they do share in the losses if ris!y pro ects fail and drive the firm into ban!ruptcy. Therefore$ bondholders generally want corporate managers to invest in low ris!Blow return pro ects rather than high ris!Bhigh return pro ects. c. One advantage of operating a business as a corporation is that stoc!holders can deduct their pro rata share of the ta%es the firm pays$ thereby eliminating the double ta%ation investors would face in a partnership. d. One drawbac! of forming a corporation is that you lose the limited liability that you would otherwise receive as a sole proprietor. e. 9otential conflicts between stoc!holders and bondholders are increased if the bonds are made convertible into common stoc!.

"!siness et#ics
&1

Answer: e

MEDIUM

Which of the following statements would most people in business agree with? a. 2 corporation(s short0run profits will almost always increase if the firm ta!es actions that the government has determined are in the best interests of the nation. b. >irms and government agencies almost always agree with one another regarding the restrictions that should placed on hiring and firing employees. c. *Whistle blowers$+ because of the courage it ta!es to blow the whistle$ are generally promoted more rapidly than other employees. d. #t is not useful for large corporations to develop a formal set of rules defining ethical and unethical behavior. e. 2lthough people(s moral characters are probably developed before they get into a business school$ it is still useful for business schools to cover ethics$ if only to give students an idea about the adverse conse)uences of unethical behavior to themselves$ their firms$ and the nation.

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Chapter 1: An Overview of Financial Management

Social welfare
&&

Answer: a

MEDIUM

Which of the following statements is CORRECT? a. The ability of firms in competitive industries to engage voluntarily in socially beneficial but costly pro ects is constrained by competition and the need to attract capital. b. 2ny action that would ma%imi'e a firm(s stoc! price must be consistent with the ma%imi'ation of social welfare. c. @ecisions regarding social and ethical behavior have no effect$ either positive or negative$ on firms( stoc! prices. d. #n a competitive industry$ if one group of firms is *socially conscious+ and ta!es costly actions designed to improve social welfare$ but other firms do not$ then most investors will floc! to the socially conscious firms$ thus enhancing their ability to attract capital. Eventually$ these firms must dominate the industry. e. #f the government did not mandate some actions deemed to be socially responsible$ such as those relating to fair hiring practices$ most firms in competitive mar!ets would still pursue these policies.

Corporate c#arter and b$laws

&,

Answer: c

MEDIUM

Which of the following statements is CORRECT? a. The corporate bylaws are a standard set of rules that is established by the state of incorporation$ and their purpose is to ensure that the firm(s managers run the firm in accordance with state laws. b. The corporate charter is a standard document prescribed by the state of incorporation$ and its purpose is to ensure that the firm(s managers run the firm in accordance with state laws. 9rocedures for electing corporate directors are contained in bylaws$ while the declaration of the activities that the firm will pursue and the number of directors are included in the corporate charter. c. The corporate charter is concerned with things li!e what business the company will engage in$ whereas the bylaws are concerned with things li!e procedures for electing the board of directors. d. 2ttorney fees are generally involved when a company develops its charter and bylaws$ but since these documents are voluntary$ a new corporation can avoid these costs by deciding not to have either a charter or bylaws. e. Companies must establish a home office$ or domicile$ in a particular state$ and that state must be the one in which most of their business /sales$ manufacturing$ and so forth1 is conducted.

Chapter 1: An Overview of Financial Management

Page !

Corporate form
&-

Answer: b

MEDIUM

Which of the following statements is CORRECT? a. 2 hostile ta!eover is the main method of transferring ownership interest in a corporation. b. 2 corporation is a legal entity created by a state$ and it has a life and e%istence that is separate from the lives and e%istence of its owners and managers. c. Anlimited liability and limited life are two !ey advantages of the corporate form over other forms of business organi'ation. d. 5imited liability is an advantage of the corporate form of organi'ation to its owners /stoc!holders1$ but corporations have more trouble raising money in financial mar!ets because of the comple%ity of this form of organi'ation. e. 2lthough the stoc!holders of the corporation are insulated by limited legal liability$ the legal status of the corporation does not protect the firm(s managers in the same way$ i.e.$ bondholders can sue its managers if the firm defaults on its debt.

%artners#ip form
&3

Answer: d

MEDIUM

Which of the following statements is CORRECT? a. #n a typical partnership$ liability for other partners( misdeeds is limited to the amount of a particular partner(s investment in the business. b. #n a limited partnership$ the limited partners have voting control$ while the general partner has operating control over the business$ and the limited partners are individually responsible$ on a pro rate basis$ for the firm(s debts in the event of ban!ruptcy. c. 2 slow0growth company$ with little need for new capital$ would be more li!ely to organi'e as a corporation than would a faster growing company. d. 9artnerships have more difficulty attracting large amounts of capital than corporations because of such factors as unlimited liability$ the need to reorgani'e when a partner dies$ and the illi)uidity /difficulty buying and selling1 of partnership interests. e. 2 ma or disadvantage of a partnership relative to a corporation is the fact that federal income ta%es must be paid by the partners rather than by the firm itself.

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Chapter 1: An Overview of Financial Management

Firm organization
&4

Answer: c

MEDIUM

Which of the following statements is CORRECT? a. @ue to limited liability$ unlimited lives$ and ease of ownership transfer$ the vast ma ority of A.". businesses /in terms of number of businesses1 are organi'ed as corporations. b. 8ost businesses /by number and total dollar sales1 are organi'ed as proprietorships or partnerships because it is easier to set up and operate as one of these forms rather than as a corporation. <owever$ if the business gets very large$ it becomes advantageous to convert to a corporation$ primarily because corporations have important ta% advantages over proprietorships and partnerships. c. @ue to legal considerations related to ownership transfers and limited liability$ most business /measured by dollar sales1 is conducted by corporations in spite of large corporations( less favorable ta% treatment. d. 5arge corporations are ta%ed more favorably than sole proprietorships. e. Corporate stoc!holders are e%posed to unlimited liability.

Firm organization
&6

Answer: e

MEDIUM

Which of the following statements is CORRECT? a. Corporations are ta%ed more favorably than sole proprietorships. b. Corporations have unlimited liability. c. =ecause of their si'e$ large corporations face fewer regulations than smaller corporations and sole proprietorships. d. Reducing the threat of corporate ta!eover increases the li!elihood that managers will act in shareholders( interest. e. =ond covenants are designed to protect bondholders and to reduce potential conflicts between stoc!holders and bondholders.

Financial polic$ and cas# flows

&7

Answer: c

MEDIUM

Which of the following statements is CORRECT? a. The optimal dividend policy is the one that satisfies the bondholders because they supply the ma ority of the firm(s capital. b. The use of debt financing affects the probability of ban!ruptcy$ but it has no effect on the firm(s earnings or stoc! price. c. The ris!iness of pro ected earnings and cash flows to stoc!holders depends to some e%tent on how the firm is financed. d. "toc! prices are dependent on pro ected total cash flows and the use of debt$ but not on the timing of the cash flow stream. e. @ividend policy is one aspect of the firm(s financial policy that is determined directly by each individual shareholder.

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Corporate goals and control

&:

Answer: e

MEDIUM

Which of the following statements is CORRECT? a. The proper goal of the financial manager should be to ma%imi'e the firm(s e%pected cash flows$ because this will add the most wealth to each of the individual shareholders /owners1 of the firm. b. The financial manager should see! that combination of assets$ liabilities$ and capital that will generate the largest e%pected pro ected after0ta% income over the relevant time hori'on. c. The ris!iness inherent in a firm(s earnings per share /E9"1 depends on the characteristics of the pro ects the firm selects$ which means it depends upon the firm(s assets$ but E9" does not depend on the manner in which those assets are financed. d. 5arge$ publicly0owned firms li!e 2TCT and D8$ are controlled by their management teams. Ownership is generally widely dispersed$ hence managers have great freedom in how they manage the firm. 8anagers may operate in stoc!holders( best interests$ but they may also operate in their own personal best interests. 2s long as managers stay within the law$ there are no effective tools that can be used to motivate them to ta!e actions that are in the stoc!holders( best interests. e. 9otential conflicts of interest can e%ist between stoc!holders and managers$ and also between stoc!holders and bondholders.

Conflicts of interests
,;

Answer: d

MEDIUM

Which of the following statements is CORRECT? a. One of the ways in which firms can mitigate or reduce potential conflicts between bondholders and stoc!holders is by increasing the amount of debt in the capital structure. b. The threat of ta!eover generally increases potential conflicts between stoc!holders and managers. c. 8anagerial compensation plans cannot be used to reduce potential conflicts between stoc!holders and managers. d. The threat of ta!eovers tends to reduce potential conflicts between stoc!holders and managers. e. The creation of the "ecurities and E%change Commission /"EC1 eliminated conflicts between managers and stoc!holders.

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Chapter 1: An Overview of Financial Management

Miscellaneo!s concepts
,1

Answer: e

MEDIUM

Which of the following statements is CORRECT? a. Corporations face few regulations and more favorable ta% treatment than do sole proprietorships and partnerships. b. 8anagers who face the threat of hostile ta!eovers are less li!ely to pursue policies that ma%imi'e shareholder value compared to managers who do not face the threat of a hostile ta!eover. c. =ond covenants are an effective way to resolve conflicts between shareholders and managers. d. =ecause of their simplified organi'ation$ it is easier for sole proprietors and partnerships to raise large amounts of outside capital than it is for corporations. e. One advantage to forming a corporation is that the owners of the firm have limited liability.

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A$+(E"+ A$D +%L,!'%$+ CHA !E" #

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Chapter 1: An Overview of Financial Management

1&

Firm organization

Answer: e

EASY

"ole proprietorships and partnerships pay personal income ta%$ but they avoid the corporate income ta%. && ,& Firm organization Firm organization Answer: c Answer: a EASY EASY

Corporations have limited liabilityE however$ they face more regulations than the other forms of organi'ation. "ole proprietorships do not pay corporate ta%es. -& 3 Firm organization & Answer: a EASY

Firm organization Answer: c EASY

#f ownership in a proprietorship or partnership is transferred$ the basic documents under which the firm operates must be rewritten$ whereas for a corporation the seller simply sells shares to a buyer. 4& Corporate form Answer: e EASY

Outsiders thin!ing about investing in a business are generally not willing to be sub ected to unlimited liability$ and they also want to be able to sell their shares should they choose to do so. Corporations provide these advantages$ hence firms that need large amounts of capital that must be raised in capital mar!ets generally choose to incorporate. 6& Corporate form Answer: a MEDIUM

Corporations have to do more reporting to state and federal agencies than other businesses. 7& Goal of firm Answer: d MEDIUM

The primary operating goal should be to ma%imi'e the long0run stoc! price$ or the intrinsic value. :& Conflicts of interest Answer: d MEDIUM

#f stoc! options align the interests of stoc!holders and managers$ but if all of a manager(s options vest on a given date$ that manager may attempt to ma!e earnings loo! good on the vesting date so that he or she can sell the shares received at a high price. 1;& 11& Conflicts of interest Conflicts of interest Answer: a Answer: b MEDIUM MEDIUM

Corporate ta!eovers are most li!ely to occur when a firm is underperforming. 8anagers who fear losing their obs will try to ma%imi'e shareholder wealth. 1&& 1,& Conflicts of interest Managerial incenti es Answer: e Answer: d MEDIUM MEDIUM

1-

&

Managerial Answer: c

incenti es MEDIUM

"mall stoc!holders have little clout with management$ while large institutional investors are better able to force managers to operate in stoc!holders( interests. 13& 14& 16& 17& Miscellaneo!s concepts Miscellaneo!s concepts Miscellaneo!s concepts Miscellaneo!s concepts Answer: c Answer: d Answer: b Answer: a MEDIUM MEDIUM MEDIUM MEDIUM

#f a firm(s stoc! is undervalued relative to its potential$ then someone can profit by ta!ing it over and doing a better ob running it. 1:& &;& &1& &&& &,& &-& &3& &4& &6& &7& &:& ,;& ,1& Miscellaneo!s concepts Miscellaneo!s concepts "!siness et#ics Social welfare Corporate c#arter and b$laws Corporate form %artners#ip form Firm organization Firm organization Financial polic$ and cas# flows Corporate goals and control Conflicts of interests Miscellaneo!s concepts Answer: d Answer: b Answer: e Answer: a Answer: c Answer: b Answer: d Answer: c Answer: e Answer: c Answer: e Answer: d Answer: e MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM MEDIUM