Question 1:

Statement 1: Financing decisions determine both the mix and the type of assets held by the firm. True or False?

Statement 2: Investment decisions determine both the mix and the type of financing used by the firm. True or False?

Question 2:

When factoring accounts receivables, the factor is the

a. Financial institution that buys the A/R

b. Method of determining how much money is lent to the firm

c. Negotiated accounts receivable account

d. Percent deduction in payment to the firm