In: Finance
Indicate whether the following statements are (True) or (False) and correct the False statements:
1. The corporate treasurer typically handles both cost accounting and financial accounting.
2. Marginal analysis states that financial decisions should be made and actions taken only when added benefits are greater than zero. (
3. The conflict between the goal of a firm's owners and the goal of its non-owner managers is incompatibility. ()
4. The sale of either bonds or stocks to the general public is called private placement. ( )
5. Capital markets attract the suppliers and demanders of short term funds like marketable securities.
6. When considering each financial decision alternative or possible action in terms of its impact on the share price of the
firm's stock, financial managers should accept only those actions that are expected to increase the firm's profitability. ()
7. Primary and secondary markets are markets for short-term and long-term securities, respectively. ( )
8. Financial markets are intermediaries that channel the savings of individuals, businesses and government into loans or investments.
9. Capital markets are for investors who want a safe temporary
place to deposit funds where they can earn interest and for borrowers who have a short term need for funds. ()
10. Time-series analysis is the evaluation of the firm's financial
performance in comparison to other firm(s) at the same point in time. ()
1. False
Corporate treasure handled financial risk or accounting.
2. True
3. True
4. False
private placement never sold securities through a public offering or the general public.
5. False
Capital market is a financial market which provide long-term debt or equity securities for sale and purchase.
6.False
It can take the decision for many other reason like: competitors price effected ans so many.
7. True
8. True
9. False
Capital markets provide long-term securities.
10. True