Please answer all questions with true or false

6. Financial markets exist in order to mobilize funds from users to savers of those funds. () 7. Over-the-counter is electronic exchange of securities. 8. Good corporate decisions are those that create wealth for the shareholders 9. The principles of finance can't be applied in health care sector 10. Companies enter new markets to reduce risk through diversification 11. Ethics and ethical behavior is to do things right. () 12. Preferred stocks are stocks that once outstanding and have been re-purchased by the corporation ( ) 13. Significant amounts of funds for American corporations are supplied by foreigners 14. Unethical decisions might destroy shareholders wealth 15. Systematic risk can't be eliminated. 16. Treasury Bills are Long-term debt 17. An advantage of the corporation is easy to enter but not easy to exit from the market 18. The book value of a firm is the same as its market value. 19. Proper diversification allows corporation to reduce risk 20. The true owners of the corporation are the Board of Directors (BOD) 21. Well developed financial markets contribute to the overall growth of the economy 22. Financially, it makes no difference if both investments have the same expected risk and return. 23. Failure to spell out the rights and duties of the partners frequently leads to misunderstandings later. 24. In response to financial scandals the American congress enacted the Sarbanes-Oxley Act 25. There is an indirect relationship between risk and return. 26. A high earnings per share (EPS) does not necessarily translate into a high stock price. 27. OTC is an organized stock exchange as NASDAQ. 28. Good corporate decisions are those that create wealth for the shareholders