Question 1

Interest rates on short-term funds move up and down frequently.

Accepted Answer

A) True 
 B)False

Question 2

Managing assets for an international company creates several new challenges for a financial manager.

Accepted Answer

A) True 
 B)False

Question 3

A balance sheet hedge provides a method for global companies to reduce risks associated with exchange rate fluctuations.

Accepted Answer

A) True 
 B)False

Question 4

Jermaine raises money from wealthy individuals and institutional investors,and invests them in a variety of promising new companies.In exchange,he will become part owner of those businesses.Jermaine is a(n)

Accepted Answer

A) angel investor. 
B) underwriter. 
C) entrepreneur. 
D) venture capitalist. 
A) angel investor. 
B) underwriter. 
C) entrepreneur. 
D) venture capitalist.

Question 5

Which of these deals with the process of planning,obtaining,and managing a company's funds to accomplish its objectives as effectively and efficiently as possible?

Accepted Answer

A) Accounting 
B) Finance 
C) Knowledge management 
D) Business analytics 
A) Accounting 
B) Finance 
C) Knowledge management 
D) Business analytics

Question 6

In most companies,the CEO is promoted to the position of CFO.

Accepted Answer

A) True 
 B)False

Question 7

The financial manager for a typical corporation is responsible for

Accepted Answer

A) designing the accounting system 
B) gathering,recording,and reporting financial information 
C) determining the most appropriate sources and uses of funds 
D) preparing operating budgets for various departments 
A) designing the accounting system 
B) gathering,recording,and reporting financial information 
C) determining the most appropriate sources and uses of funds 
D) preparing operating budgets for various departments

Question 8

Commercial paper is an attractive short-term financing option because of its

Accepted Answer

A) discount size. 
B) maturity period. 
C) interest rates. 
D) availability. 
A) discount size. 
B) maturity period. 
C) interest rates. 
D) availability.

Question 9

Which of the following is the best definition of financial risk?

Accepted Answer

A) It is the uncertainty about the gain or loss from an investment. 
B) It is the uncertainty that an investment's actual return will be less than its expected return. 
C) It is the possibility that an investment will earn a negative return. 
D) It is the possibility that an investment will lose money. 
A) It is the uncertainty about the gain or loss from an investment. 
B) It is the uncertainty that an investment's actual return will be less than its expected return. 
C) It is the possibility that an investment will earn a negative return. 
D) It is the possibility that an investment will lose money.

Question 10

Major current assets include all of the following EXCEPT

Accepted Answer

A) accounts receivable. 
B) stockholders' equity. 
C) marketable securities. 
D) cash. 
A) accounts receivable. 
B) stockholders' equity. 
C) marketable securities. 
D) cash.

Question 11

What is the first step in preparing a financial plan?

Accepted Answer

A) Determine the expected level of profits for future periods 
B) A forecast of revenue over some future time period 
C) Estimate the funds needed to implement the strategies 
D) Estimate how many additional assets the company will need 
A) Determine the expected level of profits for future periods 
B) A forecast of revenue over some future time period 
C) Estimate the funds needed to implement the strategies 
D) Estimate how many additional assets the company will need

Question 12

Carter works in the financial division of his company and is responsible for preparing monetary forecasts and analyzing major investment decisions.What is Carter's title?

Accepted Answer

A) Treasurer 
B) Chief financial officer 
C) Vice president for financial management 
D) Controller 
A) Treasurer 
B) Chief financial officer 
C) Vice president for financial management 
D) Controller

Question 13

Quarterly cash payments to shareholders are known as

Accepted Answer

A) trade credit. 
B) special dividends. 
C) regular dividends. 
D) compensating balances. 
A) trade credit. 
B) special dividends. 
C) regular dividends. 
D) compensating balances.

Question 14

The first in preparing a financial plan is a forecast of sales or revenue over some future time period.

Accepted Answer

A) True 
 B)False

Question 15

Team-All Pharmaceuticals needs to raise funds to buy new production equipment.The financial manager would probably suggest that his company raise debt capital by

Accepted Answer

A) using accumulated earnings. 
B) selling stock. 
C) selling marketable securities. 
D) borrowing money from a bank. 
A) using accumulated earnings. 
B) selling stock. 
C) selling marketable securities. 
D) borrowing money from a bank.

Question 16

Which of these are short-term in nature,focusing on projections no more than a year or two in the future?

Accepted Answer

A) Asset management plan 
B) Leverage plan 
C) Strategic plan 
D) Operating plans 
A) Asset management plan 
B) Leverage plan 
C) Strategic plan 
D) Operating plans

Question 17

Bond sales tend to be higher when interest rates are lower.

Accepted Answer

A) True 
 B)False

Question 18

Leverage _____ the return to shareholders and _____ the risk of their investment.

Accepted Answer

A) lowers; lowers 
B) lowers; increases 
C) increases; lowers 
D) increases; increases 
A) lowers; lowers 
B) lowers; increases 
C) increases; lowers 
D) increases; increases

Question 19

Borrowing money

Accepted Answer

A) creates leverage. 
B) increases equity. 
C) decreases risk. 
D) reduces liquidity. 
A) creates leverage. 
B) increases equity. 
C) decreases risk. 
D) reduces liquidity.

Question 20

Which of the following types of funding is likely to help a large corporation acquire a small or medium enterprise?

Accepted Answer

A) Factoring 
B) Trade credit 
C) Commercial paper 
D) Venture capital 
A) Factoring 
B) Trade credit 
C) Commercial paper 
D) Venture capital

Interest rates on short-term funds move up and down frequently.

Managing assets for an international company creates several new challenges for a financial manager.

A balance sheet hedge provides a method for global companies to reduce risks associated with exchange rate fluctuations.

Jermaine raises money from wealthy individuals and institutional investors,and invests them in a variety of promising new companies.In exchange,he will become part owner of those businesses.Jermaine is a(n)

Which of these deals with the process of planning,obtaining,and managing a company's funds to accomplish its objectives as effectively and efficiently as possible?

In most companies,the CEO is promoted to the position of CFO.

The financial manager for a typical corporation is responsible for

Commercial paper is an attractive short-term financing option because of its

Which of the following is the best definition of financial risk?

Major current assets include all of the following EXCEPT

What is the first step in preparing a financial plan?

Carter works in the financial division of his company and is responsible for preparing monetary forecasts and analyzing major investment decisions.What is Carter's title?

Quarterly cash payments to shareholders are known as

The first in preparing a financial plan is a forecast of sales or revenue over some future time period.

Team-All Pharmaceuticals needs to raise funds to buy new production equipment.The financial manager would probably suggest that his company raise debt capital by

Which of these are short-term in nature,focusing on projections no more than a year or two in the future?

Bond sales tend to be higher when interest rates are lower.

Leverage _ the return to shareholders and _ the risk of their investment.

Borrowing money

Which of the following types of funding is likely to help a large corporation acquire a small or medium enterprise?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Trends in E-Commerce

Filters

Exam 17: Financial Management

Interest rates on short-term funds move up and down frequently.

Managing assets for an international company creates several new challenges for a financial manager.

A balance sheet hedge provides a method for global companies to reduce risks associated with exchange rate fluctuations.

Jermaine raises money from wealthy individuals and institutional investors,and invests them in a variety of promising new companies.In exchange,he will become part owner of those businesses.Jermaine is a(n)

Which of these deals with the process of planning,obtaining,and managing a company's funds to accomplish its objectives as effectively and efficiently as possible?

In most companies,the CEO is promoted to the position of CFO.

The financial manager for a typical corporation is responsible for

Commercial paper is an attractive short-term financing option because of its

Which of the following is the best definition of financial risk?

Major current assets include all of the following EXCEPT

What is the first step in preparing a financial plan?

Carter works in the financial division of his company and is responsible for preparing monetary forecasts and analyzing major investment decisions.What is Carter's title?

Quarterly cash payments to shareholders are known as

The first in preparing a financial plan is a forecast of sales or revenue over some future time period.

Team-All Pharmaceuticals needs to raise funds to buy new production equipment.The financial manager would probably suggest that his company raise debt capital by

Which of these are short-term in nature,focusing on projections no more than a year or two in the future?

Bond sales tend to be higher when interest rates are lower.

Leverage _____ the return to shareholders and _____ the risk of their investment.

Borrowing money

Which of the following types of funding is likely to help a large corporation acquire a small or medium enterprise?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Business Today

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management,leadership,and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment,teamwork,and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Trends in E-Commerce

Filters

Leverage _ the return to shareholders and _ the risk of their investment.