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1) Nonfinancial information plays no part in capital budgeting.
2) The prime rate is the interest rate the bank charges its most creditworthy customers.
3) Net working capital indicates the percentage of current liabilities to current assets.
4) A weak-form efficient market is a market in which prices reflect all past information.
5) The Sarbanes-Oxley Act of 2002 was passed by the U.S. Congress in response
several political scandals.
6) The net profit margin is an example of a market value ratio.
7) Firms may not sell marketable securities to cover cash shortfalls.
8) Speculative inflation is the tendency of prices, aided by union-corporation contracts,
to rise during economic expansion and to resist declines during recessions.
9) Speculative inflation is caused by the expectation that prices will continue to rise,
resulting in increased buying to avoid even higher future prices.
10) New York Stock Exchange is an example of a primary market.
11) Unemployment and welfare benefits are examples of transfer payments for which
no current productive services are given in return.
