All questions are True or False. 1. The most common partnership arrangement

All questions are True or False.

1. The most common partnership arrangement carries limited liability to the partners.

2. Equity is a measure of the monetary contributions that have been made directly or indirectly on behalf of the owners of the company.

3. The stock market tends to move up when inflation goes up.

4. Growth in sales volume prevents a shortage of funds.

5. The contribution margin is equal to price per unit minus total costs per unit.

6. A risky financial plan will use long-term financing for fixed assets permanent current assets and a portion of temporary current
assets.

7. For most firms the primary motive for holding cash is the transaction motive.

8. Approximately 40% of short-term financing is in the form of accounts payable or trade credit.

9. The interest factor for the present value of a single amount is the inverse of the future value interest factor.

10. The fact that small businesses are usually illiquid does not affect their valuation process.