Question 1

The process by which decisions are made regarding investments in long-lived assets 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 2

Borrowing money ________.

Accepted Answer

A)  creates leverage 
B)  increases financial flexibility 
C)  decreases risk to shareholders 
D)  decreases expected returns to shareholders due to interest payments 
A)  creates leverage 
B)  increases financial flexibility 
C)  decreases risk to shareholders 
D)  decreases expected returns to shareholders due to interest payments

Question 3

The exercise of employee stock options is a source of equity capital for a business.

Accepted Answer

A) True 
 B)False

Question 4

The major purpose of cash is to pay day-to-day expenses.

Accepted Answer

A) True 
 B)False

Question 5

_____ is the amount of assets needed to generate a given level of sales.

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 6

Major current assets include all of the following EXCEPT________.

Accepted Answer

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

Question 7

Which of the following assets would a firm most likely finance using long-term sources?

Accepted Answer

A)  Inventory 
B)  Accounts receivable 
C)  Marketable securities 
D)  Another company 
A)  Inventory 
B)  Accounts receivable 
C)  Marketable securities 
D)  Another company

Question 8

A(n)_____ is a transaction in which one company buys another.

Accepted Answer

A)  synergy 
B)  take-over 
C)  acquisition 
D)  merger 
A)  synergy 
B)  take-over 
C)  acquisition 
D)  merger

Question 9

Stocks or bonds that are sold exclusively to a small group of large investors are known as _____.

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 10

Managing assets for an international company reduces challenges faced by a financial manager.

Accepted Answer

A) True 
 B)False

Question 11

Whenever a company borrows money,it creates leverage.

Accepted Answer

A) True 
 B)False

Question 12

Most private placements are ________.

Accepted Answer

A)  Canadian government securities 
B)  corporate debt issues 
C)  corporate equity issues 
D)  municipal debt issues 
A)  Canadian government securities 
B)  corporate debt issues 
C)  corporate equity issues 
D)  municipal debt issues

Question 13

Kaitlyn's company needs to obtain funds in order to keep the business going;however,she does not want stockholders influencing the direction of her company.What type of financing should Kaitlyn acquire?

Accepted Answer

A)  Equity capital 
B)  Combination of debt and equity capital 
C)  Angel investor 
D)  Debt capital 
A)  Equity capital 
B)  Combination of debt and equity capital 
C)  Angel investor 
D)  Debt capital

Question 14

Debt capital is always preferable to equity capital.

Accepted Answer

A) True 
 B)False

Question 15

In the typical firm,the ________ is the chief accounting manager.

Accepted Answer

A)  chief financial officer 
B)  treasurer 
C)  controller 
D)  chief executive officer 
A)  chief financial officer 
B)  treasurer 
C)  controller 
D)  chief executive officer

Question 16

In most firms the controller is the chief accounting manager.

Accepted Answer

A) True 
 B)False

Question 17

Identify the major sources of equity capital.

Accepted Answer

The major sources of equity capital incl

Question 18

All of the following are sources of short-term funds EXCEPT ________.

Accepted Answer

A)  trade credit 
B)  bank loans 
C)  commercial paper 
D)  bonds 
A)  trade credit 
B)  bank loans 
C)  commercial paper 
D)  bonds

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The sovereign wealth fund is a variation of _____.

Accepted Answer

A)  the private equity fund 
B)  debt capital 
C)  market securities 
D)  private placements 
A)  the private equity fund 
B)  debt capital 
C)  market securities 
D)  private placements

The process by which decisions are made regarding investments in long-lived assets is _____.

Borrowing money ________.

The exercise of employee stock options is a source of equity capital for a business.

The major purpose of cash is to pay day-to-day expenses.

_____ is the amount of assets needed to generate a given level of sales.

Major current assets include all of the following EXCEPT________.

Which of the following assets would a firm most likely finance using long-term sources?

A(n)_____ is a transaction in which one company buys another.

Stocks or bonds that are sold exclusively to a small group of large investors are known as _____.

Managing assets for an international company reduces challenges faced by a financial manager.

Whenever a company borrows money,it creates leverage.

Most private placements are ________.

Kaitlyn's company needs to obtain funds in order to keep the business going;however,she does not want stockholders influencing the direction of her company.What type of financing should Kaitlyn acquire?

Debt capital is always preferable to equity capital.

In the typical firm,the ________ is the chief accounting manager.

In most firms the controller is the chief accounting manager.

Identify the major sources of equity capital.

All of the following are sources of short-term funds EXCEPT ________.

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

The sovereign wealth fund is a variation of _____.

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

Exam 17: Financial Management

The process by which decisions are made regarding investments in long-lived assets is _____.

Borrowing money ________.

The exercise of employee stock options is a source of equity capital for a business.

The major purpose of cash is to pay day-to-day expenses.

_____ is the amount of assets needed to generate a given level of sales.

Major current assets include all of the following EXCEPT________.

Which of the following assets would a firm most likely finance using long-term sources?

A(n)_____ is a transaction in which one company buys another.

Stocks or bonds that are sold exclusively to a small group of large investors are known as _____.

Managing assets for an international company reduces challenges faced by a financial manager.

Whenever a company borrows money,it creates leverage.

Most private placements are ________.

Kaitlyn's company needs to obtain funds in order to keep the business going;however,she does not want stockholders influencing the direction of her company.What type of financing should Kaitlyn acquire?

Debt capital is always preferable to equity capital.

In the typical firm,the ________ is the chief accounting manager.

In most firms the controller is the chief accounting manager.

Identify the major sources of equity capital.

All of the following are sources of short-term funds EXCEPT ________.

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

The sovereign wealth fund is a variation of _____.

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