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. ( )