Capital budgeting investments are based on the assumption that rates of return on investments

Broker Jones had a listing to sell seller Smith's house. Broker Jones received an offer on the house and presented it to seller Smith who hesitated in accepting the offer. The broker promised Smith verbally to find Smith another suitable residence before escrow closed. On the basis of that, the seller accepted the offer. If broker Jones failed to perform during the time period, which of the following is most nearly correct?

A: Seller Smith could initiate a civil suit and the broker would be responsible for damages; B: Since the promise was verbal, the broker has no liability; C: If Smith files a complaint, broker Jones may be liable for criminal negligence; D: Seller Smith may withdraw his acceptance of the offer without liability.

Which of the following statements is FALSE?

A) Firms with seasonal cash flows may find themselves with a surplus of cash during some months that is sufficient to compensate for a shortfall during other months. However, because of timing differences, such firms often have short-term financing needs. B) A company forecasts its cash flows to determine whether it will have surplus cash or a cash deficit for each period. C) Like seasonalities, positive cash flow shocks can create short-term financing needs. D) When sales are concentrated during a few months, sources and uses of cash are also likely to be seasonal.