Funds business loans in an economy

Assignment Help Financial Management

Reference no: EM131813018

(1) Savings by _______ in small dollar amounts is the origin of much of the money that funds business loans in an economy

(a) small businesses

(b) none of these

(d) the US government

(2) If your firm primarily borrows from commercial banks, then it primarily acce3sses the capital markets through

(A) a legal loophole that loows all comercail banks the ability to underwrite securities

(B) direct financing

(D) none of these

3. An example of an gency cost is

(a) a manger turning down a value-contriguting project because of its risks

(b) all of these

(c) a manager using too little debt withing the firm's capital structure because of the additional risk associated with debt

(d) a manger expensing a lavish dinner on the company expense report

4. A sole proprietorship is an owner's only business

(a) True

(b) False

Reference no: EM131813018

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