BUS 320 Chapter 1 – Flashcards

Inflation is assumed to be a temporary problem that does not affect financial decisions.

There is unlimited liability in a general partnership.

Dividends paid to corporate stockholders have already been taxed once as corporate income.

Corporate governance issues have become less important to the financial community during the first decade of the new millennium.

A major focus of the Sarbanes Oxley Act is to make sure that publicly traded companies accurately present their assets, liabilities and income in their financial statements.

Timing is not a particularly important consideration in financial decisions.

Money markets refer to those markets dealing with short-term securities having a life of one year or less.

The primary market includes the sale of securities by way of initial public offerings.

New issues are sold in the secondary market.

Higher return always induces stockholders to invest in a company.