1. Initial Public Offering (IPO) market is____________________. A. A market in which firms are offered for sale to the public for the first time. B. A market in which firms trade in their raw materials. C. A market in which firms offer shares to the public for the first time. D. A and B only. 2. Limited liability and ease of raising capital are advantages of a _______________. A. Sole proprietorship. B. Partnership. C. Corporation. D. Closed corporation. 3. Which of the following is the correct formula for the cash conversion cycle? A. Average age of inventory + average collection period average payment period. B. Average payment period average age of inventory + average collection period. C. Average age of inventory + average payment period average collection period. D. Operating cycle Average age of inventories. 4. Which of the following does not describe a money market? A. Key securities traded are bonds and stocks. B. A market for debt securities with maturities of one year or less. C. Examples are Treasury bill and Bank of Botswana certificates. D. A financial relationship between supplier and demanders of short-term financing. 5. The ratio of shareholders funds to total assets of the company is referred to as_____________. A. Debt-equity ratio. B. Economic equity ratio. C. Liquidity ratio. D. None of the above. 6. To financial analysts, "net working capital" means the same thing as __________. A. Total assets. B. Fixed assets. C. Current assets. D. Current assets minus current liabilities. 7. The following are the roles of a finance manager except__________. A. Wealth Maximization. B. Marketing the organization. C. Financial planning. D. Controlling the use of funds. 8. The primary role of a finance manager include all the following except ______________________. A. Finance decision. B. Accounts decision. C. Dividend decision. D. Investment decision 9. Interest on a bond is known as________________. A. Return. B. Yield. C. Coupon. D. Maturity value. 10. Cash flows from investment activities include_________________. A. Cash payments to purchase property plant and equipment. B. Cash receipts from sale of fixed assets. C. Cash receipts from repayments of loans made to other parties. D. All of the above State whether each of the following statements is TRUE or FALSE. 1. The main aim of the firm is to maximise shareholders wealth. 2. Bonds and stocks are the major capital market securities. 3. An aggressive funding strategy helps the business to meet its seasonal funding requirements using long term financing option to meet its seasonal and permanent requirements of funds. 4. Budgeting helps in establishing the responsibilities at different levels. 5. A budget is a collation of forecasts and plans expressed in financial terms. 6. The highest price offered by a dealer to purchase a given security is referred to as the ask price, and the lowest price at which the dealer is willing to sell the security is referred to as the bid price. 7. A corporation has limited liability. 8. Liquidity ratios measure the companys ability to meet short term obligations. 9. The investing flows are directly related to sale and production of the products and services. 10. The major input for preparing pro forma statements is the sales forecast