1. Which of the following is true? A firm’s overall growth is limited by:
A. its depletion of assets.
B. its capital structure.
C. its ability to raise debt financing.
D. None of these answers is correct.
2. You own shares in General Motors. Driving to work this morning, you hear the news that workers at one of GM’s largest plants have made a surprise decision to go on strike for higher wages. This will definitely hurt GM production and profits. If the market is efficient, you should sell your shares immediately to avoid losing money from a negative hit to GM’s stock price.
True or False