Exam 13: Managing Financial Resources

A(n)_____ is a preliminary financial plan for a given time period,generally a year.

All of the following are common methods of financing a new business except _____.

Credit unions are widely used because they're easier to deal with than banks.

The stocks of the largest,most prestigious corporations in the world are traded on _____.

_____ deposits are checking accounts that pay given sums to "payees" when they're ordered.

A(n)_____ market deals in initial public offerings.

A market index is a written offer to sell securities that describes the business and operations of the issuer.

Which of the following is the best reason why money exchange is more efficient than barter?

If you want to start a small business and need a bank loan,your banker will want primarily to see your mission statement.

You and a friend want to open new pet grooming and pet services shop. Once established, you intend to open a second store in a larger town 20 miles away. If store number two is a success, you plan to start franchising your company. -Besides calculating the amount of funds that your business needs for a specified period of time,your financial plan should include a(n)_____.

You and a friend want to open new pet grooming and pet services shop. Once established, you intend to open a second store in a larger town 20 miles away. If store number two is a success, you plan to start franchising your company. -_____ will probably be the most important source of funds for your new business.

All of the following are depository institutions except _____.

Capital credit is extended to a business by its suppliers.

Finance companies can be characterized as deposit institutions because they provide traditional banking services.

When Pete Peterson took out a small business loan,the bank asked for security in the form of _____.

Privately held for 18 years, Superior Chemicals Inc. has finally decided to go public. The owners are in the process of deciding whether to use debt or equity financing to finance growth after the initial public offering -Regardless of their choice of financing,Superior will generate a prospectus,or written offer to sell securities that provides useful information to prospective buyers.

Stockholders' equity is also called owner's equity.

______ sell protection against losses incurred by illness,disability,death,and property damage.

A(n)_____ is the process of taking a privately held company public by selling stock for the first time.

If you're a farmer who needs help clearing his fields and has plenty of food to spare,you might enter into a _____ transaction with a laborer who has time to clear fields but not enough food.