Exam 16: Short-Term Business Financing

Using the conservative approach for financing a firm's assets,long term financing would be used only to finance fixed assets,while short term financing would be used to finance current assets including seasonal fluctuations.

(True/False)

4.8/5

(93)

Question 121

The effective annual interest rate on a one-year,$1,000,000,12% discount loan that requires a 10% compensating balance is

(Multiple Choice)

4.8/5

(86)

Question 122

The Small Business Administration:

(Multiple Choice)

4.8/5

(81)

Question 123

A receivable from the sale of merchandise on the basis of a draft or bill of exchange drawn against the buyer or the buyer's bank is termed a (n):

(Multiple Choice)

4.7/5

(79)

Question 124

An advantage of short-term borrowing is the need for frequent renewals.

(True/False)

5.0/5

(79)

Question 125

Factoring accounts receivable has all of the following characteristics except:

(Multiple Choice)

4.7/5

(84)

Question 126

Compensating balances at a commercial bank are:

(Multiple Choice)

4.9/5

(74)

Question 127

Short-term financing offers greater flexibility than long-term financing.

(True/False)

4.9/5

(76)

Question 128

A commercial finance company:

(Multiple Choice)

4.7/5

(80)

Question 129

The conservative financing approach is a strategy that attempts to match the maturities of assets with the maturities of the liabilities with which they are financed.

(True/False)

4.9/5

(70)

Question 130

Which of the following is not a characteristic of a commercial finance company?

(Multiple Choice)

4.9/5

(91)

Question 131

Field warehouses are in operation throughout the United States but are concentrated in the central and East coast regions.

(True/False)

4.8/5

(75)

Question 132

Which of the following operating characteristics affect a firm's short-term financing strategy?

(Multiple Choice)

4.9/5

(88)

Question 133

If total assets are $100,000,fixed assets are $30,000,current liabilities are $20,000,then net working capital is:

(Multiple Choice)

4.8/5

(75)

Question 134

Service industries tend to have larger proportions of fixed assets to current assets.

(True/False)

4.8/5

(81)

Question 135

The choice of financing strategy involves a tradeoff between return and risk.

(True/False)

4.9/5

(76)

Question 136

The maturity matching approach is a financing strategy that attempts to match the maturities of assets with the maturities of the liabilities which they are financed.

(True/False)

4.9/5

(80)

Question 137

An aggressive financing plan has a higher financing cost,but with lower risk of not being able to borrow when short-term funds are needed.

(True/False)

4.7/5

(86)

Question 138

Short-term financing may come in the form of trade credit extended between businesses.

(True/False)

4.9/5

(80)

Question 139

A short-term promissory note sold by high-credit-quality corporations and is backed solely by the credit quality of the issuer is called:

(Multiple Choice)

4.9/5

(70)

Question 140

Showing 121 - 140 of 151

Using the conservative approach for financing a firm's assets,long term financing would be used only to finance fixed assets,while short term financing would be used to finance current assets including seasonal fluctuations.

The effective annual interest rate on a one-year,$1,000,000,12% discount loan that requires a 10% compensating balance is

The Small Business Administration:

A receivable from the sale of merchandise on the basis of a draft or bill of exchange drawn against the buyer or the buyer's bank is termed a (n):

An advantage of short-term borrowing is the need for frequent renewals.

Factoring accounts receivable has all of the following characteristics except:

Compensating balances at a commercial bank are:

Short-term financing offers greater flexibility than long-term financing.

A commercial finance company:

The conservative financing approach is a strategy that attempts to match the maturities of assets with the maturities of the liabilities with which they are financed.

Which of the following is not a characteristic of a commercial finance company?

Field warehouses are in operation throughout the United States but are concentrated in the central and East coast regions.

Which of the following operating characteristics affect a firm's short-term financing strategy?

If total assets are $100,000,fixed assets are $30,000,current liabilities are $20,000,then net working capital is:

Service industries tend to have larger proportions of fixed assets to current assets.

The choice of financing strategy involves a tradeoff between return and risk.

The maturity matching approach is a financing strategy that attempts to match the maturities of assets with the maturities of the liabilities which they are financed.

An aggressive financing plan has a higher financing cost,but with lower risk of not being able to borrow when short-term funds are needed.

Short-term financing may come in the form of trade credit extended between businesses.

A short-term promissory note sold by high-credit-quality corporations and is backed solely by the credit quality of the issuer is called:

The Financial Environment

Money and the Monetary System

Banks and Other Financial Institutions

Federal Reserve System

Policy Makers and the Money Supply

International Finance and Trade

Savings and Investment Process

Interest Rates

Time Value of Money

Bonds and Stocks: Characteristics and Valuation

Securities Markets

Financial Return and Risk Concepts

Business Organization and Financial Data

Financial Analysis and Long-Term Financial Planning

Managing Working Capital

Capital Budgeting Analysis

Capital Structure and the Cost of Capital

Filters