Financial Management Midterm Chapters 1-5 with correct answers

The term "capital structure" refers to: A) the mix of long-term debt and equity financing B) the type of assets a firm acquires C) whether or not the firm invests in a capital budgeting projects D) refers to the real assets (tangible and intangible assets) correct answersthe mix of long-term debt and equity financing Determining the number of shares of stock to issue is an example of a _______ decision A) capital rationing B) net working capital C) capital budgeting D) capital allocation E) capital structure correct answerscapital structure Deciding which long-term investments a firm should make is a ____ decision A) working capital management B) capital constraints C) cost of capital D) capital budgeting E) capital structure correct answerscapital budgeting A firm owned by two or more people who each have unlimited liability for all of the firm's debts is called a: A) corporation B) sole proprietorship