Q5.Ensuring that there is adequate cash to pay the firm's suppliers is an example of which cash-related activity in the cash flow cycle? a. operating activity ; b. investing activity; c. profitability activity; d. financing activity.

Q6. Which of the following is NOT a direct cost associated with inventory?

a. stock out cost; b. acquisition cost; c. carrying costs; d. order costs.

Q7. A credit default swap is essential a : a put option on the firm's assets ; b. put option on the firm's debt; c. call option on the firm's assets ; d. call option on the firm's debt.

Q8. The writer of a call option has: a. the right to sell a security for a given price; b. the obligation to buy a security for a given price; c. the obligation to sell a security for a given price; d. the right to buy a security for a given price.