Selected Answer Answers By hiring creative people instead of logical people By

Selected answer answers by hiring creative people

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Selected Answer: Answers: By hiring "creative" people instead of "logical" people.
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  By linking manager compensation to stock price improvement. By hiring a diverse group of employees to manage the firm. By allowing employees to opt out of the social security system to increase  their take home pay. Question 18 5 out of 5 points What is meant by the term "information asymmetry" in a corporation? Selected Answer: Answers:   It means that company insiders and managers have information that  stockholders do not have. It means that shareholders have information that is not known to the public  yet. It means that the stock price is going to go up soon. It means that sometimes the stock price is not visible to traders on the NYSE due to power outages and other national emergencies. Question 19 0 out of 5 points What are three factors that managers can control that affect the firm's stock price? Selected Answer: Answers: economic shocks, laws and regulations, and the business environment   the magnitude, timing, and risk of the firm's cash flows the level of economic activity, the level of interest rates, and sales  revenue the number of customers, the level of interest rates, and the accounting  profits Question 20 5 out of 5 points Net working capital is equal to Selected Answer:
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Answers: total assets minus total liabilities   current assets minus current  liabilities cash minus inventory cash plus accounts receivable Governments are the principal lender-savers   in the economy. Selected  Answer:  False Answers: True  False Question 2 3 out of 3 points A primary market is any financial market in which owners of outstanding  securities can resell them to other investors. Selected  Answer:  False Answers: True  False Question 3 3 out of 3 points The existence of an active secondary market for a security will help enhance  the price for a security in the primary market. Selected  Answer:  True Answers:  Tru e False Question 4 3 out of 3 points Equities are generally traded in the capital market. Selected  Answer:  True Answers:  Tru e False Question 5
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3 out of 3 points Real rates of interest are perfectly observable. Selected  Answer:  False Answers: True  False Question 6 5 out of 5 points What is the role of the financial system? Selected Answer: Answers: To make sure there is full employment in the economy   To channel To set interest rates and borrowing costs for the economy To collect income taxes from individuals and  corporations Question 7 5 out of 5 points What are the two major components of the financial system?
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