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1)1)Define Agency theory 2) Risk in investment can be eliminated by improved accounting and auditing procedures? - True b- False 3- Accounting regulation prevents fraud

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1)1)Define Agency theory 2) Risk in investment can be eliminated by improved accounting and auditing procedures? - True b- False 3- Accounting regulation prevents fraud. a- True b- False 4. Only firms that perform well have incentives to report their operating results. a. True b- False 5. Which of the following concepts provides a framework for analysing financial reporting incentives between managers and owners? 2- Signalling theory b- Agency theory C- Information symmetry 6. What is signalling theory?

2)A mechanic borrows $7500 to expand his garage. The interest rate is 14% compounded quarterly with payments due every quarter. What are the quarterly payments if the loan is to be paid off in 5 years? (Round your final answer to two decimal places.)

3)Consider the following timeline: Date $500 Cash flow -S500 If the current market rate of interest is 7%, then the value as of year 1 is closest to O $0 O $570 O $1000 O $68