Question 3: [1-mark x 10 = 10 marks) State whether the following statements are true or false. 1) Within Corporation, one key value of limited liability is that it lowers owners' risks and thereby enhances a firm's value. 2) Money markets are markets for short-term debt securities. 3) Negative net operating cash flow of firm means that the firm has solvency. 4) Agency Problem creates when managers are acting on behalf of owners' interest. 5) Increase in current liabilities and decrease in current asset represents inflow cash. 6) If an individual investor buys or sells a currently outstanding stock through a broker, this is a primary market transaction. 7) Activity ratios explain the firm ability to use assets efficiently. 8) Trade-Off between Risk-Return is the main principle to maximize the firm value. 9) Reduce inventory and use the proceeds to pay off a part of current liabilities will lead to increas the quick ratio. 10) Unethical Behavior of the manager includes using the information that not available to the public to make money. rease 4