5.A household's wealth or net worth is measured by the value of its minus its (a)liabilities;assets (b)assets;liabilities (c)stocks;bonds (d)bonds;liabilities Answer:(b) 6.The branch of finance dealing with financial decisions of firms is called or (a)investments;international finance (b)markets;institutions (c)business finance;institutions (d)business finance;corporate finance Answer:(d) 7.A disadvantage of the sole proprietorship is the fact that the sole proprietor has (a)limited liability for the debts of the firm (b)unlimited liability for the debts of the firm (c)expensive costs to establish the firm (d)limited authority over the day-to-day business decisions of the firm Answer:(b) 8.Marlowe owns a house worth $150,000,a car worth $25,000 and has an $18,000 bank account. Marlowe owes $135,000 to the bank on a home mortgage loan,$18,000 on the car loan and has an $18,000 credit card debt outstanding.Calculate Marlowe's net worth. (a)$58,000 (b)$123,000 (c)$22,000 (d)$37,000 Answer:(c) 9.An advantage of the corporate form of ownership is (a)no liability (b)unlimited liability (c)limited liability (d)CEO liability Answer:(c) 10.In the corporate form,the separated structure creates the potential for between owners and managers. 1-21-2 5. A household’s wealth or net worth is measured by the value of its ________ minus its ________. (a) liabilities; assets (b) assets; liabilities (c) stocks; bonds (d) bonds; liabilities Answer: (b) 6. The branch of finance dealing with financial decisions of firms is called ________ or ________. (a) investments; international finance (b) markets; institutions (c) business finance; institutions (d) business finance; corporate finance Answer: (d) 7. A disadvantage of the sole proprietorship is the fact that the sole proprietor has ________. (a) limited liability for the debts of the firm (b) unlimited liability for the debts of the firm (c) expensive costs to establish the firm (d) limited authority over the day-to-day business decisions of the firm Answer: (b) 8. Marlowe owns a house worth $150,000, a car worth $25,000 and has an $18,000 bank account. Marlowe owes $135,000 to the bank on a home mortgage loan, $18,000 on the car loan and has an $18,000 credit card debt outstanding. Calculate Marlowe’s net worth. (a) $58,000 (b) $123,000 (c) $22,000 (d) $37,000 Answer: (c) 9. An advantage of the corporate form of ownership is ________. (a) no liability (b) unlimited liability (c) limited liability (d) CEO liability Answer: (c) 10. In the corporate form, the separated structure creates the potential for ________ between owners and managers