State whether the following statements are true or false. 4) Agency Problem creates when managers are acting on behalf of owners’ interest. 5) Increase in current liabilities and decrease in current asset represents inflow cash. 6) If an individual investor buys or sells a currently outstanding stock through a broker, this is a primary market transaction. 7) Activity ratios explain the firm ability to use assets efficiently.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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State whether the following statements are true or false.

4) Agency Problem creates when managers are acting on behalf of owners’ interest.


5) Increase in current liabilities and decrease in current asset represents inflow cash.


6) If an individual investor buys or sells a currently outstanding stock through a broker, this is a primary market transaction.


7) Activity ratios explain the firm ability to use assets efficiently.

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