Financial management may be thought of as analysis of which three primary subject areas? Management of capital budgeting, capital structure, (net) working capital. Management of capital budgeting, capital structure, security marketing. Management of capital budgeting, tax analysis, security marketing. Management of capital budgeting, net working capital, tax analysis. Management of net working capital, tax analysis, security marketing. Which of the following is an example of a capital market instrument? Common stock. Preferred stock. An one- ear bond. a and b. All of the above You recently sold to a friend 200 shares of stock, and the transfer was made through a broker. This is an example of: A money market transaction. A primary market transaction. A secondary market transaction. A capital market transaction c and d are correct. The decision to issue debt rather than additional shares of stock is an example of: a capital structure decision. a net working capital decision. a capital budgeting decision an investment decision. working capital management. Spot market uses today's interest rate in transaction while futures market uses future's interest rate in transaction. T/F When you purchase a rental house and receive rental income, you are making a financial investment. T/F The goal of running a business is to maximize owners' wealth. T/F For sole proprietorship, to maximize owners' wealth is to maximize the company's profit. T/F For corporations, to maximize owner's wealth is to maximize the company's profit. T/F Credit card is not considered as money. T/F Net working capital refers to a company's short-term assets plus short-term liabilities. T/F On the futures market the borrowers do not get the money until in a future time but they lock in today's interest rate. T/F Commercial banks are financial intermediaries on financial market. T/F US government can issue both stocks and bonds. T/F