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Which of these following statements is most likely to be true about credit sales? a) The regular monies paid by the buyer are not normally considered to include an explicit allowance for interest. b) Legal ownership of the underlying asset tends to transfer to the buyer more slowly than under a hire purchase agreement. c) The length of the arrangement relative to the expected useful lifetime of the underlying asset is not a critical factor for the seller. d) The seller has a right to take back the underlying asset if the buyer defaults

Which of the following is false about project financing? a) It involves the creation of a new legal entity for a specific project. b) It uses non-recourse factoring to reduce the cost of financing a project. c) It is used for large projects requiring significant amounts of capital. d) Its use attempts to limit the impact on the borrowing capacity of those parties who wish to pursue the project.

Which of the following statements is true about share buybacks? a) Occurs when individuals who were former shareholders are offered shares in the company. b) It will tend to increase the companys level of gearing. c) Under the arrangement the offer price will usually be set at a discount to the current market share price. d) The market capitalisation of the company will most likely increase after the exercise.

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