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Question(s) / Instruction(s):

1. What form of partnership allows some of the investors to limit their liability? Explain by giving examples. (25 points) 2. When does insider trading occur? What government agency is responsible for protecting against the unethical practice of insider trading? Explain by giving examples. (25 points) 3. Explain how the tax code allows depreciation to contribute to cash flow. (25 points) 4. Explain why inflation may restrict the usefulness of the balance sheet as normally presented.

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