771. The allocation of capital is determined by _________.
A.Expected rates of return.
B.The Bank of Canada.
C.The initial sale of securities in the primary market.
D.The size of the federal debt

772. The mix of debt and equity in a firm is referred to as the firm’s _______.
A.Primary capital.
B.Capital composition.
C.Cost of capital.
D.Capital structure.

773. The main focus of finance for the last 40 years has been _______.
A.Mergers and acquisitions.
B.Conglomerate firms.
C.Inflation.
D.Risk-return relationships

774. Rate of tax on capital gain and current income may influence form of _________.
A.Equity.
B.Preference.
C.Debt.
D.Capital.

775. In finance, “working capital” means the same thing as __________.
A.Total assets.
B.Fixed assets.
C.Current assets.
D. Current assets minus current liabilities.

776. In deciding the appropriate level of current assets for the firm, management is confronted with_____________.
A.Atrade-off between profitability and risk.
B.Atrade-off between liquidity and marketability.
C.Atrade-offbetween equity and debt

777. ___________ varies inversely with profitability.
A.Liquidity.
B.Risk.
C.Accounts.
D.Trade

778. Permanent working capital ___________.
A.Varies with seasonal needs.
B.Includes fixed assets.
C.Is the amount of current assets required to meet a firm’s long-term minimum needs.
D.Includes accounts payable.

779. Net working capital refers to ___________.
A.total assets minus fixed assets.
B.current assets minus current liabilities.
C.currentassets minus inventories.
D.current assets.

780. Earlier a debt equity norm of _______ was generally insisted on by the controller of capital issues.
A.1:1.
B.1:2.
C.2:1.
D.2:2.

NOTE
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