Note that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used in multiple-choice questions. See the preface for information on the AACSB letter indicators (F, M, etc.) on the subject lines. Multiple Choice: True/False (1-1) Role of finance F M Answer: a EASY 1. In most corporations, the CFO ranks under the CEO. a. True b. False (1-1) Role of finance F M Answer: b EASY 2. The Chairman of the Board must also be the CEO. a. True b. False (1-1) Role of finance F M Answer: a EASY 3. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. a. True b. False (1-3) Forms of organization F M Answer: a EASY 4. Partnerships and proprietorships generally have a tax advantage over corporations.