Question: MULTIPLE CHOICES . just GIVE THE RIGHT ANSWER . NO NEED TO EXPLAIN ANYTHING. [16]. When a corporation uses the financial markets to raise new
[16]. When a corporation uses the financial markets to raise new funds, the sale of securities is made in the A. Third market. B. secondary market. C. on-line market. D. primary market. (17) The financial markets allocate capital to corporations by A. Relying on the opinion of investment bankers. B. requiring higher returns from companies with lower risk than their competitors. C. rewarding companies with expected high returns with lower relative stock prices. D. reflecting expectations of the market participants in the prices of the corporations. [18]. Asset accounts on the balance sheet are listed in the order of: A. importance B. profitability. C. size. D. liquidity. (19) Which of the following is not a primary source of capital to the firm? A. bonds B. common stock C. preferred stock D. assets [20]. Which of the following would not be classified as a current asset? A. Investments B. Marketable securities C. Prepaid expenses D. Inventory
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