1. Short-term financing is normally cheaper than long-term financing because it:
a. is less risky for the borrower
b. has interest costs which are certain
c. has higher transaction costs
d. usually has lower interest rates than long-term financing
2. All of the following are characteristics of a Stock, except?
a. Form of capital
b. Vote directly for management
c. Entitlement to equity
d. Entitlement to stock dividends (if paid)