Chapter 2

Question 1

Internal financing includes funds obtained from issuing new equity shares.

Answer 1

False
(This is external financing; internal financing includes reserves and depreciation)

Question 2

Variable dividend policies introduce uncertainty for investors.

Answer 2

True

Question 3

Participative loans combine characteristics of loans and equity.

Answer 3

True

Question 4

Leasing transfers the ownership of an asset from the lessor to the lessee at the start of the lease.

Answer 4

False
(Ownership may transfer only at the end, depending on the lease type)

Question 5

Crowdfunding can be used to finance both charitable projects and profit-driven ventures.

Answer 5

True

Question 6

The subscription right value ensures that existing shareholders can maintain their ownership proportion during a new share issuance.

Answer 6

True

Question 7

Reserves are considered a form of self-financing.

Answer 7

True

Question 8

Dividend policies that consistently pay fixed amounts have no impact on share price.

Answer 8

False (Stable dividend policies can affect investor confidence and share price)

Question 9

Leasing always involves the option to purchase the leased asset.

Answer 9

False (This applies to financial leasing, not operational leasing)

Question 10

Venture capitalists invest in companies primarily for philanthropic reasons.

Answer 10

False
(They seek high returns on their investment.)

Question 11

A company’s dividend policy has no impact on its long-term financing needs.

Answer 11

False
(Dividends reduce retained earnings available for reinvestment.)

Question 12

Leasing allows a firm to access assets while preserving cash flow for other investments.

Answer 12

True

Question 13

Venture capital investments are typically focused on low-risk projects.

Answer 13

False
(Venture capital often targets high-risk, high-reward startups or projects.)

Question 14

Operational leasing is primarily used for assets with high technological obsolescence risks, such as computers.

Answer 14

True

Question 15

Participative loans rank higher in repayment priority than regular creditors in the event of company liquidation.

Answer 15

False
(They rank lower than regular creditors but higher than equity.)

Question 16

Crowdfunding cannot provide equity-based returns to investors.

Answer 16

False
(Equity-based crowdfunding allows investors to receive equity in return for their contributions.)

Question 17

To evaluate the overall cost of capital associated with a specific investment project (or the cost of capital associated with an investment), we would represent the financial dimension of cash-flows caused by different financial sources and distributed over time, considering annual accrual.

Answer 17

True

Question 18

The assets depreciation does not play any financial role in the company.

Answer 18

False
(Depreciation plays a financial role in the company)

Question 19

The accounting role of depreciation reflects the reduction of the value of non-current assets in accounting according to the depreciation estimated for each one of these assets.

Answer 19

True

Question 20

One of the restrictions for dividends payment is the need to save some money as legal or voluntary reserves.

Answer 20

True