1. The risk averse prefers debt instruments, while the risk seekers go for ________

A) Equity investments.
B) Preference investments.
C) Debt investments.
D) None of these.



2. A method of budgeting that estimates todays value of money to be received in the future; It is discounted due to the uncertainty of its true value in the future and for the cost of the capital is______________.

A) Cash inflow.
B) Cash outflow.
C) Discounted cash flow
D) Payback period



3. A main benefit to the corporate form of organization is __________.

A) Double taxation of corporate income.
B) Simplicity of decision making and low organizational complexity.
C) Limited liability for the corporate shareholders.
D) A major management role exists for the firm's owners



4. Rate of tax on capital gain and current income may influence form of _________.

A) Equity.
B) Preference.
C) Debt.
D) Capital.



5. Net working capital refers to ___________.

A) total assets minus fixed assets
B) current assets minus current liabilities.
C) current assets minus inventories.
D) current assets.