QUESTION 4

The moderate approach to current asset financing is the least profitable but the safest of all the three approaches.

True

False

QUESTION 6

All else equal, firms that hold greater amounts of short-term assets are considered riskier than firms that hold greater amounts of long-term securities.

True

False

QUESTION 7

A firm must pay _____ costs even if it produces and sells nothing.?

	a.	?breakeven
	b.	?lumpy
	c.	?direct labor
	d.	?fixed
	e.	?variable

QUESTION 11

Companies provide cash discounts to customers for early payments to speed up the collection period.

True

False

QUESTION 14

The funds that are obtained from routine business transactions are referred to as spontaneously generated funds.

True

False