1. Profit maximization stresses the efficient use of timing and risks. 

TRUE

FALSE 

 

2. Financial assets are tangible assets such as houses, equipment, and inventories. 

TRUE

FALSE

 

 3. The sustainable rate of growth represents the rate at which a firms sales can grow if it wants to maintain its present financial ratios and does not want to resort to a sale of new equity shares. 

TRUE

FALSE

 

 4. Business risk refers to the relative disperses in the firms expected earnings after interest and taxes. 

TRUE 

FALSE

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