1. true or False: Chemical manufacturer DuPont has approximately $0.94 in assets for every dollar in sales. According to asset intensity for every $100 increase in sales, the firm would need about $94 of additional assets.

2. True or False: When venture capitalists invest in a start-up business, they contribute debt capital.

3. True or False: Treasury bills are short-term securities issued by the United States government.

4. True or False: Both debt and equity capital have set maturities.

5. True or False: Risk is defined as the uncertainty of a profit or a loss.

6. True or False: The major purpose of cash is to pay day-to-day expenses.

7. True or False: Virtually all financial decisions involve a tradeoff between risk and return.

8. True or False: Hedge funds account for about 10% of all stock exchange activity.

9. True or False: Investments that promise the highest returns tend to involve the most risk.

10. True or False: Financial managers are responsible for increasing profits to shareholders.

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