Question: True or false ...... Common share holders are essentially the owners of an organization - i.e. once all the bills are paid they own the




True or false ...... Common share holders are essentially the owners of an organization - i.e. once all the "bills" are paid they own the remainder including retained earnings True False Question 6 (1 point) Saved True or false..... "Short term" projects are defined in this course as having a life shorter than 3 years True False True or false: Preferred shareholders are entitled to their dividend only after the common shareholders are paid their dividend. True False Question 8 (1 point) Saved True or false....... Lenders will try to obtain security on their loans in order to reduce their risk True False Your company manufactures tables, normally 500 units per month - you just got an order for 1,000 units for delivery next month, and are considering accepting it or not. "Capacity" issues under consideration would include do you have enough skilled employees? do you have enough machines? do you have enough time as a manager to oversee such a large order? all of the listed answers are correct Question 4 (1 point) Saved True or false......Financing through debt is more "risky" to a organization versus selling common shares True False True or false...... "Relevant" a.k.a "differential" information to a decision's analysis includes only information/parameters that will change as a result of that decision True False Question 10 (1 point) Saved True or false..... By definition, "Sunk costs" change with a decision True False When it comes to making a decision, not all parameters/factors to be considered can be broken down into $ 's - these parameters/factors are termed qualitative information relevant data variable costs quantitative information Question 2 (1 point) Saved True or false..... The Chief Executive Officer controls the organization's dividend policy True False
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