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  3. a. question 5 0.59 out of 0.59 points financial pr

a. Question 5 0.59 out of 0.59 points Financial Principle 3: Risk requires a reward...

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a. Question 5 0.59 out of 0.59 points Financial Principle 3: Risk requires a reward means: Answers: Cash flow, not profits, represents money that can be spent b. Investors will not invest if they do not expect to receive a return on their investment C. A dollar received today is more valuable than a dollar received one year from now Question 6 0.59 out of 0.59 points Financial Principle 4: Market prices are generally right Answers: a. Stock market prices are a useful barometer of the value of a firm b. Managers often make decisions that actually lead to a decrease in the value of a firm's stock Investors will not invest if they do not expect to receive a return on their investment Question 7 O out of 0.59 points Financial Principle 5: Conflicts of Interest Cause Agency Problems, means: Answers: a. Investors will not invest if they do not expect to receive a return on their investment b. Cash flow, not profits, represents money that can be spent c. Managers often make decisions that actually lead to a decrease in the value of a firm's stock Question 8 0.59 out of 0.59 points Which of the follow is not an area of finance in business? Answers: a. Capital budgeting b. Estate planning C. Working capital management

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