example of a firm's financing decision would be: B) how much to pay for a specific asset. C) the issuance of ten-year versus twenty-year bonds. D) whether or not to increase the price of its products. S A share of IBM stock is purchased by an individual investor for $75 and I another investor for $125. Who profits from this sale? B The first investor C) The second investor D) Profit is split between IBM and the investor. 9The legal-life" of a corporation is: A) coincident with that of its CEO B) equal to the life of the Board of Directors permanent, as long as shareholders don't change. permanent, regardless of current ownership. 10. Net working capital is calculated by taking the difference between A) total assets and total liabilities. B) inventory and accounts payable. current assets and current liabilities. D) cash and long-term debt. 11. What happens when moving from net income to cash flows as the resu in inventory balances? A) Cash flows increase. B) Cash flows decrease C) Cash flows are unchanged. D) The change in cash flows cannot be determined. 12. Primary markets can be distinguished from secondary markets in tat sell A) lower valued shares B) previously unsold shares. C) only the shares of large firms. D) shares with greater profit potential. 13. Financial markets are used for trading: A) both real assets and financial assets. B) the goods and services produced by a firm. securities, such as shares of IBM ) the raw materials used in manufacturing