Assignment 1 with solutions(1,2_3)

Assignment 1 with solutions(1,2_3) - Chap 1 c 1. The amount...

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Chap 1 c 1. The amount of debt and equity used by a firm to finance its operations is called the firm’s: a. debt ratio. b. working capital ratio. c. capital structure. d. financial position. e. cash position. a 2. The document which specifies how net profits and losses are to be divided among two or more individual owners, who are personally liable for the firm’s debts, is called: a. a partnership agreement. b. the corporate by-laws. c. the articles of incorporation. d. the partnership bill of rights. e. the limiting agreement. a 3. The primary market refers to: a. the original sale of securities by the issuer. b. transactions between two institutional shareholders. c. the sale of securities by an individual shareholder. d. the first trade of a firm’s securities when the financial markets open in the morning. e. all transactions on the NYSE. b 4. The purpose of capital budgeting is to: a. avoid all projects that involve risk. b. identify assets that produce value in excess of their cost. c.
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This note was uploaded on 07/08/2011 for the course BUS 203 taught by Professor Shin during the Spring '11 term at Ewha Womans University.

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Assignment 1 with solutions(1,2_3) - Chap 1 c 1. The amount...

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