Reference no: EM132882887

Problem 1: What do you call the amount of current assets required to meet a firm's long-term minimum needs?

Option 1: Permanent working capital

Option 2: Temporary working capital

Option 3: Net working capital

Option 4: Gross working capital

Problem 2: Statement 1: Sufficient working capital is needed to prevent a business from becoming insolvent. Statement 2: Preference shares is a source of short term finance.

Option 1: Only S1 is true

Option 2: Only S2 is true

Option 3: Both statements are true

Option 4: Both statements are false

Problem 3: What statement is false regarding the matching strategy?

Option 1: All assets should be financed with permanent long term capital

Option 2: Temporary current assets should be financed with temporary working capital

Option 3: Permanent current assets should be financed with permanent working capitals

Option 4: Long term assets should be financed from long term capital

Problem 4: Floor-plan finance is most probably used by:

Option 1: Supermarket

Option 2: Real estate agent

Option 3: Retailer of motor vehicles

Option 4: Firm of public accountants