Question 1
Which of the following is a component of a firm's working capital account?
◦ Long-term loans
◦ Debentures
◦ Inventory
◦ Mortgage bonds
◦ Convertible bonds
Question 2
Which of the following is a major advantage of equity financing through the sale of shares of ownership?
◦ Selling shares of ownership makes the company's operations less complicated.
◦ Selling shares of ownership does not change the way a company is managed.
◦ Selling shares of ownership consumes less time than other forms of financing.
◦ Selling shares of ownership has tremendous potential to fuel organizational growth.
◦ Owners do not risk their position in the firm when selling shares.