Answer the following.

Exercise 1-1: Write True if the statement is correct or False if the statement is incorrect. 1. Primary market is the source of new securities for the secondary market. 2. Initial public offerings of stocks and bonds to investors is done in the primary market and subsequent trading is done in the secondary market. 3. Business finance is both an art and science of managing the financial resources of an organization. 4. Finance as an academic discipline, has its roots from accounting and economics. 5. Financial managers have a major role in a company's management. This role is essentially the same in all companies - that is, to acquire the necessary funds and to ensure that they are used effectively. 6. The financial manager has responsibility for obtaining funds and allocating them among alternative projects and specific uses. 7. Profit maximization is generally preferred over wealth maximization. 8. Timing of return is important; the earlier the return is received, the better because it can reduce the risk or uncertainty and the money received can be reinvested sooner. 9. Today, more and more firms are directly addressing the issue of ethics by establishing corporate ethics policies and requiring employee compliance with them. 10. Most business leaders believe businesses strengthen their competitive positions by maintaining high ethical standards. 11. The controller's functions are primarily external in nature. 12. Partnership is the most common and simplest form of a business organization. 13. A sole proprietorship is registered with the SEC. 14. A cooperative has juridical personality. 15. The main advantage of corporation is tax exemption. 16. A corporation may be owned by one person. 17. Decision making in sole proprietorship is quite difficult. 18. Partnership can be easily dissolved. 19. In a cooperative, the members need to patronize the cooperative's goods or services. 20. A cooperative can only have 15 members