1. What are the primary criteria in selecting marketable securities for inclusion in a firm's portfolio?
2. What types of marketable securities are most suitable for inclusion in a firm's portfolio? What characteristics of these securities make them desirable investments for temporarily idle cash balances?
3. What is multilateral netting? Give an example of how this would work for a multinational firm.
4. What measures can the board of directors of a corporation take to discourage unethical (and illegal) behavior, such as the mail and wire fraud by E. F. Hutton managers described in the chapter?