Exam 18: Finance

European Airlines forecast that its profits will increase by 2-4 percent for flights between Europe and Canada during the next 12 months. This prediction is part of which of the following activities?

Which of the following are forecasts for outlays for fixed assets, usually covering a period of several years?

Which of the following groups invest in new businesses in return for part of the ownership, sometimes as much as 60 percent?

Sales made, but for which payment has not yet been collected, are called accounts payable.

Financial management is the art and science of managing a company's money so the company can meet its goals.

Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.

A company's basic approach to paying dividends can greatly affect which of the following?

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount. This sale is known as which of the following activities?

Term loans are best described by which of the following?

What is a loan that requires the borrower to pledge specific assets as collateral?

Tracy Lefteroff is the global managing partner for PricewaterhouseCoopers. She said that her company is eager to invest in newly created biotech companies because Canada has an aging population that will need new medications and treatments. Which of the following kinds of equity capital would Lefteroff be likely to provide?

The concept of risk-return trade-off is best described by which of the following?

Hannah Perez keeps track of day-to-day operational data to make sure her employer has enough cash to run the business. She will determine if and when the company she works for should open a second distribution centre. Which type of manager is Perez?

A formal written forecast of revenues and expenses is called a budget.

Which of the following managers wants to keep the least amount of inventory on hand?

What are short-term investments that are easily converted back to cash and are used by financial managers to achieve higher returns than those offered by chequing accounts?

Which of the following is a short-term unsecured debt issued by a financially strong corporation?

What is the willingness to bear risk without insurance?

In which of the following industries are you most likely to find factoring being used?

In finance, the potential for loss is called probability.