Exam 1: Introduction to Canadian Hospitality Financial Management and Fundamental Principles of Financial Management

A tax shield is the product of prudent financial management such as the strategic application of legal depreciation methods.

Internally Generated Funds are a result of profitable operations.

The most common form of business organization in Canada is the sole proprietorship.

An equity kicker is an arrangement in which an individual agrees to provided services to a hospitality enterprise in exchange for little or no pay but a significant portion of the company's shares.

Angel investors are typically:

"Risk" should be thought of as:

Bonds and loans are types of:

An "Equity Kicker" can work well for a hospitality startup when:

Equity financing can take place by securing "Angel" investors.

Under most circumstances a hospitality operation cannot secure debt financing unless there is already some equity in place.

The optimal capital s

IGF can be increased by:

Startup capital can include venture capital.

Which of the following is a disadvantage with a cooperative?

Working capital is equal to Current Assets less Current Liabilities. tructure represents the ideal mix of IGF, debt, and equity financing.

Corporations reward shareholders in the form of dividends.

Given the following information what is the Working Capital (WC) value for Niagara Hotels Ltd? Current Assets:= $480,000 Current Liabilities:= $360,000

Debt financing can include both loans and bonds.