Exam 19: Mastering Financial Management

Beard Auction receives an invoice from one of its European suppliers for antiques. The amount of the invoice is $40,000 with terms of 3/10, net/60. If the invoice is paid on day 20, Beard is entitled to a ____ cash discount and will write the check for ____.

The usual repayment period for long-term business loans is

Often high-risk decisions generate larger returns while conservative decisions generate lesser returns. From a financial management standpoint does this make sense? Also, what can a financial manager do to reduce risk while increasing the firm's financial return?

A feature of corporate bonds is that they

Jones Manufacturing needs $450,000 to build a new plant. It must also spend $200,000 on new equipment for the plant. Both of these needs are examples of

What is the typical denomination for most corporate bonds?

LaTisha starts a business called ValueCentral.com, the concept takes off, and the company has an IPO and goes public. The company is growing very rapidly and trying to keep up with customer demand. What type of dividend is this company likely to pay its stockholders?

The ____ ratio is based on the principle that a high-risk investment should generate higher financial returns for a business and more conservative decisions often generate lesser returns.

The board of directors of a corporation usually is elected by

A firm that specializes in buying other firms' accounts receivable is called a(n)

All of the following would be considered appropriate collateral for a long-term loan except

The date on the face of a bond telling when the face value is to be repaid is called the

All of the following are uses of long-term financing except

What is speculative production and how does it impact a firm's financial planning?

For a manufacturer, it is impossible to have cash-flow problems before peak sales periods.

Most financial managers agree that since the recent financial crisis, financing has become more difficult and expensive to obtain.

The most basic form of ownership in a corporation is

During the recent economic crisis, many companies found that it was

The movement of money into and out of an organization is called

The interest rate and repayment terms for term loans often are based on such factors as the reasons for borrowing, the borrowing firm's credit rating, and the value of collateral.