1. A firm's current ratio has steadily increased over the past 5 years, from 1.9 to 3.8. What would a financial analyst probably conclude from this information?
a. The firm's fixed assets turnover has improved.
b. The firm's liquidity position has improved.
c. The firm's stock price has increased.
d. The firm's financial leverage has improved.
e. The firm's market value has increased.
2. Which of the following is true of stockholders in continental Europe?
a. The stocks of corporations are widely dispersed among a large number of different investors, both individuals and institutions.
b. Many stockholders assign banks their proxy votes for the directors of the companies.
c. Banks are major stockholders of corporations in continental Europe.
d. Major stockholders of closed corporations are not involved in the firms' daily operations.
e. Stockholders in continental Europe are often family units resulting from the universal banking relationship existing in the United States.