Question 1

All of the following actions result in equity capital EXCEPT ________.

Accepted Answer

A)  issuing bonds 
B)  liquidating assets 
C)  issuing stock 
D)  reinvesting earnings 
A)  issuing bonds 
B)  liquidating assets 
C)  issuing stock 
D)  reinvesting earnings

Question 2

When the buyer makes what is known as a tender offer for the target's shares,it specifies a price and the form of payment.

Accepted Answer

A) True 
 B)False

Question 3

All of the following are considered to be marketable securities EXCEPT ________.

Accepted Answer

A)  treasury bills 
B)  commercial paper 
C)  repurchase agreements 
D)  bonds 
A)  treasury bills 
B)  commercial paper 
C)  repurchase agreements 
D)  bonds

Question 4

Grace is the financial manager for Manitoba Fabrication and has decided to raise additional funds for the company by raising equity capital.She might do so by ________.

Accepted Answer

A)  establishing a line of credit with a local bank 
B)  selling marketable securities 
C)  persuading existing owners to contribute additional funds 
D)  selling a bond 
A)  establishing a line of credit with a local bank 
B)  selling marketable securities 
C)  persuading existing owners to contribute additional funds 
D)  selling a bond

Question 5

Explain the concept of leverage.

Accepted Answer

Leverage is created by increasing the ra

Question 6

________ would be the LEAST likely to obtain a private placement.

Accepted Answer

A)  Commercial banks 
B)  Pension fund managers 
C)  Small individual investors 
D)  Life insurance companies 
A)  Commercial banks 
B)  Pension fund managers 
C)  Small individual investors 
D)  Life insurance companies

Question 7

A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n)_________.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds 
A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds

Question 8

The process that periodically checks actual revenues and expenses against forecast values is ________.

Accepted Answer

A)  asset management 
B)  budgeting 
C)  financial control 
D)  financial planning 
A)  asset management 
B)  budgeting 
C)  financial control 
D)  financial planning

Question 9

Firms often rely on short-term sources of funds to pay for large,permanent assets,such as machinery and buildings.

Accepted Answer

A) True 
 B)False

Question 10

Private placements are subject to fewer government regulations because registration with Canadian Securities Administration is not required for selling securities privately.

Accepted Answer

A) True 
 B)False

Question 11

The financial manager for a typical corporation is responsible for ________.

Accepted Answer

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

Question 12

Two types of divestitures are _____.

Accepted Answer

A)  sell-offs and trade-offs 
B)  trade-offs and spin-offs 
C)  buy-offs and spin-offs 
D)  sell-offs and spin-offs 
A)  sell-offs and trade-offs 
B)  trade-offs and spin-offs 
C)  buy-offs and spin-offs 
D)  sell-offs and spin-offs

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

The gain or loss that results from an investment over a specified period of time is known as ________.

Accepted Answer

A)  risk 
B)  return 
C)  uncertainty 
D)  expected value 
A)  risk 
B)  return 
C)  uncertainty 
D)  expected value

Question 15

Explain the three steps in preparing a financial statement.

Accepted Answer

The first is a forecast of sales or reve

Question 16

All short-term bank loans are secured,meaning that the borrower pledges specific assets as collateral.

Accepted Answer

A) True 
 B)False

Question 17

Trade credit is a major source of short-term financing.

Accepted Answer

A) True 
 B)False

Question 18

A mix of a firm's debt and equity capital is ____.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds 
A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds

Question 19

The technique of increasing the rate of return on an investment by financing it with borrowed funds is called _____.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds 
A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds

Question 20

Corporate debt securities are the most common type of security sold privately.

Accepted Answer

A) True 
 B)False

All of the following actions result in equity capital EXCEPT ________.

When the buyer makes what is known as a tender offer for the target's shares,it specifies a price and the form of payment.

All of the following are considered to be marketable securities EXCEPT ________.

Grace is the financial manager for Manitoba Fabrication and has decided to raise additional funds for the company by raising equity capital.She might do so by ________.

Explain the concept of leverage.

________ would be the LEAST likely to obtain a private placement.

A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n)_________.

The process that periodically checks actual revenues and expenses against forecast values is ________.

Firms often rely on short-term sources of funds to pay for large,permanent assets,such as machinery and buildings.

Private placements are subject to fewer government regulations because registration with Canadian Securities Administration is not required for selling securities privately.

The financial manager for a typical corporation is responsible for ________.

Two types of divestitures are _____.

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

The gain or loss that results from an investment over a specified period of time is known as ________.

Explain the three steps in preparing a financial statement.

All short-term bank loans are secured,meaning that the borrower pledges specific assets as collateral.

Trade credit is a major source of short-term financing.

A mix of a firm's debt and equity capital is ____.

The technique of increasing the rate of return on an investment by financing it with borrowed funds is called _____.

Corporate debt securities are the most common type of security sold privately.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

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 Labour 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

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Exam 17: Financial Management

All of the following actions result in equity capital EXCEPT ________.

When the buyer makes what is known as a tender offer for the target's shares,it specifies a price and the form of payment.

All of the following are considered to be marketable securities EXCEPT ________.

Grace is the financial manager for Manitoba Fabrication and has decided to raise additional funds for the company by raising equity capital.She might do so by ________.

Explain the concept of leverage.

________ would be the LEAST likely to obtain a private placement.

A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n)_________.

The process that periodically checks actual revenues and expenses against forecast values is ________.

Firms often rely on short-term sources of funds to pay for large,permanent assets,such as machinery and buildings.

Private placements are subject to fewer government regulations because registration with Canadian Securities Administration is not required for selling securities privately.

The financial manager for a typical corporation is responsible for ________.

Two types of divestitures are _____.

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

The gain or loss that results from an investment over a specified period of time is known as ________.

Explain the three steps in preparing a financial statement.

All short-term bank loans are secured,meaning that the borrower pledges specific assets as collateral.

Trade credit is a major source of short-term financing.

A mix of a firm's debt and equity capital is ____.

The technique of increasing the rate of return on an investment by financing it with borrowed funds is called _____.

Corporate debt securities are the most common type of security sold privately.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

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 Labour 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

Filters