1. __________, roll over, swap early retirement and the like need to be adopted when needed.

A) Periodic servicing.
B) Involvement.
C) Responsibility.
D) Investment.



2. The __________ is the proportion of earnings that are paid to common shareholders in the form of a cash dividend.

A) Retention rate.
B) 1 plus the retention rate.
C) Growth rate.
D) Dividend pay-out ratio.



3. Which of the following are not among the daily activities of financial management?

A) Sale of shares and bonds.
B) Credit management
C) Inventory control.
D) The receipt and disbursement of funds.



4. The main focus of finance for the last 40 years has been _______.

A) Mergers and acquisitions.
B) Conglomerate firms.
C) Inflation.
D) Risk-return relationships.



5. Permanent working capital ___________.

A) Varies with seasonal needs
B) Includes fixed assets.
C) Is the amount of current assets required to meet a firm's long-term minimum needs.
D) Includes accounts payable.