BUS 320 Chapter 1

Inflation is assumed to be a temporary problem that does not affect financial decisions. Is this statement true or false?

• True

• False

In a general partnership, is there unlimited liability for the partners?

• True

• False

Have corporate governance issues become less important to the financial community during the first decade of the new millennium?

• True

• False

A major focus of the Sarbanes-Oxley Act is to ensure that publicly traded companies accurately present their assets, liabilities, and income in their financial statements. Is this statement true or false?

• True

• False

Are dividends paid to corporate stockholders taxed only once as corporate income?

• True

• False

Is timing not a particularly important consideration in financial decisions?

• True

• False

Do money markets refer to those markets dealing with short-term securities having a life of one year or less?

• True

• False

Does the primary market include the sale of securities by way of initial public offerings (IPOs)?

• True

• False

Are new issues sold in the secondary market?

• True

• False

Do higher returns always induce stockholders to invest in a company?

• True

• False