true or false

1. The APR formula is: net annual savings divided by average investment.

2. The operating activities section of a SCF, indirect method, evaluates only the disposal of depreciable assets.

3. Funds raised through proper financial management should never be invested in assets such a food and beverage inventories.

4. One of the advantages of profit maximization as a financial goal is that it takes into consideration every possible risk.

5. The concepts of financial management are basically the same for both profit and non-profit organizations.

6. Another term for a companys statement of business purpose is a mission statement.

7. Renting an asset, from a cash flow point of view, may be more profitable than purchasing.

8. A method of accelerating the flow of funds from individual units in a chain operation to the companys head office bank account is known as concentration banking.

9. The four levels in the decision making process are data production, data sorting, information production, and variance analysis.

10. Management by exception is the establishment of secondary goals set by the organizations department heads.