Which of the following is a disadvantage of strongly relying on market timing?
A) It requires the investor to make frequent trades.
B) It has steady but very low returns because the investments are low risk.
C) It requires huge, long term-investments on a single company, thus accentuating the risk.
D) It is very time consuming and takes a very long time to get the returns.
Question 2 - Because of small-business competition, large companies must become more efficient and responsive to consumers' needs.
Indicate whether the statement is true or false
Question 3 - Long-term financing should be used to do which of the following?
A) Pay for speculative production
B) Purchase inventory for resale
C) Pay salaries
D) Pay utilities
E) Develop new products
Question 4 - A systematic program of reinforcement to encourage desirable behavior is known as
A) behavior modification.
B) telecommuting.
C) job analysis.
D) job-modification.
Question 5 - Mr. Arne Freidrich looks at SoTon Co's latest annual report and feels that the company is performing well. However, he believes it is not worth spending more than 70 per share of SoTon. He contacts his broker and tells him to acquire 50 shares of SoTon only if they are less than 70 a share. Which of the following orders has Mr.Freidrich placed to acquire the shares?
A) A stop-loss order
B) A liquidation order
C) A buy limit order
D) A market order
Question 6 - Large companies often find it less expensive to purchase parts from small companies than to manufacture their own.
Indicate whether the statement is true or false
Question 7 - Slater Co has very old computers and manufacturing equipment and knows it needs to upgrade them or risk losing much of its business. Slater does not have the money to purchase the computers, so it will most likely need
A) a short-term loan.
B) to keep using the old computers.
C) to deduct the cost from employees' salaries.
D) long-term financing.
E) to use increased cash flow from sales.
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