Part 1. TRUE or FALSE (15 pts).
Direction:Write TRUE if the statement is correct or FALSE if the statement is incorrect.
TRUE
1. The Board of Directors is the highest policy making body in a corporation.
2.Short term investment decisions are needed when the company is in an excess cash
position
3. The Shareholders elect the Board of Directors (BOD).
4.VP for production is responsible in coming up with a production plan that maximizes
the utilization of the company's production facilities.
5.If we used the money from our borrowings, the asset bought is financed by DEBT.
6.If we used the money from our borrowings, the asset bought is financed by EQUITY.
7.It is NOT the role of a financial manager to determine when the company should
declare cash dividends.
8. The President or CEO is rsponsible in directing and coordinating company sales.
9.Thefinancial market is created by a financial relationship between suppliers and users
of short-term funds.
10. Dividend payments change directly with changes in earnings per share.​