Why do investors prefer receiving cash sooner rather than later, according to finance theory?
A) Incremental profits are greater than accounting profits.
B) Money received earlier can be reinvested and returns can be increased.
C) Tax considerations are important when investing.
D) Diversification leads to increased value.
Answer: B
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The word run is what part of speech?
A) verb B) adjective C) noun D) all of the above
Which of the following is true of the meeting of the creditors?
A) A meeting of the creditors is called before the court grants an order for relief. B) The bankruptcy judge cannot attend the meeting of the creditors. C) In the first meeting of the creditors, a debtor is questioned by a jury constituted for the purpose. D) Questions regarding the debtor's possible concealment of assets are not permitted during the meeting of the creditors.
What is diversifying among different kinds of assets known as?
A) multi-diversification B) portfolio funding C) capital asset classification D) asset allocation
Which of the following statements is FALSE?
A) By offering assets together with complementary services, lessors can achieve efficiency gains and offer attractive lease rates. B) Assets leased under a true lease are afforded bankruptcy protection and cannot be seized in the event of default. C) Because of the higher recovery value in the event of default, a lessor may be able to offer more attractive financing through the lease than an ordinary lender could. D) Lessors often have efficiency advantages over lessees in maintaining or operating certain types of assets.