1. Which of the following is not a source of a short term debt?

(a) trade credit (b) account receivable (c) accrued wages (d)commercial bank loan

2. An example of systematic risk is when the company's value decline to

(a) a strike at the company's plant (b) statement by the company's president (c) rising inflation (d) a product recall

3. An initial public offering is an example of financing

(a) on the new york stock exchange (b) in the primary market (c) through financial intermediary (d) in the seconday market.

4. Forecast are often related to sales because

(a) every company has sale (b)all accounts respond to sale (c)the value of many accounts depend on the level of sales (d) the company is in business to make sales

5. In financing a "tombstone" is?

6. When interest rates fall, present value

(a)increase (b)decrease (c)remain the same (d)first fall then rise.