A joint venturer is not personally liable for the debts and obligations of the joint venture partnership

Assuming all of the following firms have a required return of 14 percent, which would you expect to have a positive present value of growth opportunities?

A) a firm with a P/E ratio of 6. B) a firm with a P/E ratio of 9. C) a firm with an E/P ratio of 20 percent. D) None of the choices are expected to have positive PVGO.

With respect to Lectronic's advance to Computer Credit, Mr. Scott

A. Needs no disclosure in his auditor's report because the common ownership of the two companies has been adequately disclosed. B. Needs no disclosure in his auditor's report because the auditor is not expected to be an expert appraiser of property values. C. Should be concerned in formulating his auditor's opinion primarily with the issue of collectibility from Lectronic's viewpoint. D. Should be concerned in formulating his auditor's opinion primarily with the consolidated financial position of the two