1. Which one of the following is defined as a firm's short-term assets and its short-term liabilities? working capital B. debt C. investment capital D. net capital E. capital structure 2. Which of the following questions are addressed by financial managers? I. How should a product be marketed? Il. Should customers be given 30 or 45 days to pay for their credit purchases? III. Should the firm borrow more money? IV. Should the firm acquire new equipment? A. I and IV only B. Il and lll only C. I, I, and IIl only D. II, I, and IV only E. I, I, I, and IV 3. Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants to limit his liability to his initial investment and has no interest in the daily operations. Sam will contribute his full efforts on a daily basis but has limited funds to invest in the business. Alfredo will be involved as an active consultant and manager and will also contribute funds. Sam and Alfredo are willing to accept liability for the firm's debts as they feel they have nothing to lose by doing so. All three individuals will share in the firm's profits and wish to keep the initial organizational costs of the business to a minimum. Which form of business entity should these individuals adopt? A. sole proprietorship B. joint stock company C. limited partnership D. general partnership E. corporation 4. Which of the following parties are considered stakeholders of a firm? l. employee Il. long-term creditor IIII. government IV. common stockholder A. I only B. IV only C. I and Ill only D. Il and IV only E. I, I, and IV only 5. Which one of the following statements concerning stock exchanges is correct? A. NASDAQ is a broker market. B. The NYSE is a dealer market. C. The exchange with the strictest listing requirements is NASDAQ D. Some large companies are listed on NASDAQ E. Most debt securities are traded on the NYSE