1. The largest gainers from LBO transactions have typically been

Multiple Choice

• junk bond holders.

• raiders.

• selling stockholders.

• investment banking firms.

2. Short-term financial decisions

Multiple Choice

• involve short-lived assets.

• involve short-lived liabilities.

• are easily reversed.

• involve short-lived assets, involve short-lived liabilities, and are easily reversed.

3. The costs of holding inventory include

Multiple Choice

• carrying cost.

• carrying cost and order cost.

• insurance cost.

• carrying cost, order cost, and insurance cost.