Multiple Choice

Which of the following is not true?

Dividends are a form of business saving.

Microchippy is a new, small technology company that is prospering and growing rapidly. Which of the following would be least likely for the company?

Paying high dividends.

If you own a corporate bond, you...

are a creditor of the corporation.

To determine the financial condition of a business at a particular time, it is best to study the company's...

balance sheet.

People who put savings into shares of stock...

make money if they eventually sell the shares for more than they paid for them.

A business is most likely to use short term loans to...

meet payroll and other expenses.

When people buy shares of ABC Company's stock in the stock market (secondary market) their money goes mostly to...

none of the above.

When people buy shares of ABC's Company's stock in the IPO or new issues market (primary market) the money is received by ...

the ABC Company.

Which of the following would be the best source of information about the company's profit?

It's income statement.

Which of the following is not true about the financial markets?

Individual savers seldom can participate in them.