The following is a correct order of decreasing liquidity: pocket money, checking account, passbook savings account, money market deposit account, CD
Indicate whether the statement is true or false.
TRUE
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High cost is the biggest disadvantage to which form of advertising?
A. television B. radio C. magazine D. billboard E. Internet
Which of the following is the amount the borrower must pay back to the bondholders at maturity?
A) market value B) present value C) stated interest value D) principal amount
As a new entrepreneur Susan knows that she will probably have to work sixty to eighty hours a week. She accepts that because she has a high _________________________.
Fill in the blank(s) with the appropriate word(s).
Which of the following statements is NOT CORRECT?
A. A company may hold a relatively large amount of cash and marketable securities if it is uncertain about its volume of sales, profits, and cash flows during the coming year. B. Credit policy has an impact on working capital because it influences both sales and the time before receivables are collected. C. The cash budget is useful to help estimate future financing needs, especially the need for short-term working capital loans. D. If a firm wants to generate more cash flow from operations in the next month or two, it could change its credit policy from 2/10, net 30 to net 60. E. Managing working capital is important because it influences financing decisions and the firm's profitability.