Corporate Finance Decisions Quiz
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Questions and Answers

Financing decisions focus on how to finance long-term investments and working capital only.

False

Investing decisions are supported by a capital budgeting analysis to minimize the probability of failure.

True

Operating decisions mainly deal with long-term investment financing.

False

Dividend policies determine how to distribute all profits among equity shareholders.

<p>False</p> Signup and view all the answers

The financial system only connects savers and borrowers.

<p>False</p> Signup and view all the answers

Savings for the financial system can only come from households and government agencies.

<p>False</p> Signup and view all the answers

Shares of stocks issued by publicly listed companies are examples of financial instruments.

<p>True</p> Signup and view all the answers

Debt securities issued by the National Government cannot be traded.

<p>False</p> Signup and view all the answers

Insurance companies invest insurance premiums in various securities until needed to pay off claims.

<p>True</p> Signup and view all the answers

Commercial banks primarily use deposited funds to purchase stocks of firms or government agencies.

<p>False</p> Signup and view all the answers

Financial institutions provide business and services like banking, insurance, and investment management.

<p>True</p> Signup and view all the answers

Insurance companies attempt to influence firm management to improve their own performance.

<p>True</p> Signup and view all the answers

Individuals deposit funds at commercial banks for purchasing insurance protection.

<p>False</p> Signup and view all the answers

Financial institutions can include entities like commercial banks and government agencies.

<p>True</p> Signup and view all the answers

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