Question 1

Which of the following would be an example of a capital expenditure for a superstore that specializes in outdoor grills and other items needed for outside dining?

Accepted Answer

A)  parking lot 
B)  cardboard sale signs 
C)  pens and markers 
D)  handheld calculator 
A)  parking lot 
B)  cardboard sale signs 
C)  pens and markers 
D)  handheld calculator

Question 2

Which of the following is NOT a technique for reducing the investment in inventory?

Accepted Answer

A)  just-in-time system 
B)  inventory management 
C)  allocation analysis 
D)  materials requirement planning 
A)  just-in-time system 
B)  inventory management 
C)  allocation analysis 
D)  materials requirement planning

Question 3

Which of the following is a drawback for a company when it goes public?

Accepted Answer

A)  The company can make or lose a lot of money. 
B)  The company stock can rise or fall. 
C)  The company is watched by regulators. 
D)  The company experiences more media coverage. 
A)  The company can make or lose a lot of money. 
B)  The company stock can rise or fall. 
C)  The company is watched by regulators. 
D)  The company experiences more media coverage.

Question 4

The major disadvantage of debt financing is the inability to deduct interest expenses for income tax purposes.

Accepted Answer

A) True 
 B)False

Question 5

What is financial management?

Accepted Answer

the art and science

Question 6

Which of the following is a type of company that needs good cash management and more cash available as it has seasonal pattern of sales and receipts?

Accepted Answer

A)  toy company 
B)  juice company 
C)  shoe company 
D)  cereal company 
A)  toy company 
B)  juice company 
C)  shoe company 
D)  cereal company

Question 7

Capital budgeting is best described by which of the following?

Accepted Answer

A)  It analyzes production costs. 
B)  It helps select new products. 
C)  It selects asset proposals for maximum profitability. 
D)  It combines all budgets into a master budget. 
A)  It analyzes production costs. 
B)  It helps select new products. 
C)  It selects asset proposals for maximum profitability. 
D)  It combines all budgets into a master budget.

Question 8

What kind of budgeting would be used to make sure the company has enough money to purchase an additional warehouse when it achieves its growth goal?

Accepted Answer

The answer of What kind of budgeting would be used...

Question 9

Toronto Pneumatic Tools has changed its credit terms to encourage its buyers to pay their accounts receivable more quickly. Which of the following represents the policy that the financial manager has changed?

Accepted Answer

A)  credit ratings 
B)  account flexibility 
C)  credit terms 
D)  collection policy rate 
A)  credit ratings 
B)  account flexibility 
C)  credit terms 
D)  collection policy rate

Question 10

Which of the following is NOT one of the three key activities of the financial manager?

Accepted Answer

A)  risk assessment 
B)  investment (spending money) 
C)  financing (raising money) 
D)  financial planning 
A)  risk assessment 
B)  investment (spending money) 
C)  financing (raising money) 
D)  financial planning

Question 11

What are payments in the form of more shares to existing shareholders?

Accepted Answer

A)  rights offerings 
B)  warrants 
C)  share offerings 
D)  share dividends 
A)  rights offerings 
B)  warrants 
C)  share offerings 
D)  share dividends

Question 12

An IOU is most similar to which type of bank loan?

Accepted Answer

A)  business trade credit 
B)  revolving credit 
C)  collateralized credit 
D)  commercial paper 
A)  business trade credit 
B)  revolving credit 
C)  collateralized credit 
D)  commercial paper

Question 13

Which of the following are forecasts of the company's inflows and outflows of cash?

Accepted Answer

A)  fiscal budgets 
B)  revenue budgets 
C)  operating budgets 
D)  cash budgets 
A)  fiscal budgets 
B)  revenue budgets 
C)  operating budgets 
D)  cash budgets

Question 14

What are three important forms of long-term debt?

Accepted Answer

A)  trade credit, accounts payable, and bank loans 
B)  term loans, mortgage loans, and bonds 
C)  accounts payable, notes payable, and commercial paper 
D)  treasury bills, certificates of deposit, and accounts payable 
A)  trade credit, accounts payable, and bank loans 
B)  term loans, mortgage loans, and bonds 
C)  accounts payable, notes payable, and commercial paper 
D)  treasury bills, certificates of deposit, and accounts payable

Question 15

A mortgage loan is a long-term loan that uses real estate as collateral.

Accepted Answer

A) True 
 B)False

Question 16

Which type of management is used to determine the most effective ways to acquire and use funds to achieve the company's goals?

Accepted Answer

A)  corporate management 
B)  operations management 
C)  financial management 
D)  accounting management 
A)  corporate management 
B)  operations management 
C)  financial management 
D)  accounting management

Question 17

In finance, what is the potential for loss?

Accepted Answer

A)  leverage 
B)  risk 
C)  business chance 
D)  factoring 
A)  leverage 
B)  risk 
C)  business chance 
D)  factoring

Question 18

Which of the following statements describes an advantage inherent in equity financing?

Accepted Answer

A)  The company is not required to repay equity. 
B)  Interest is tax-deductible. 
C)  A company has an obligation to pay dividends. 
D)  Equity has a maturity date. 
A)  The company is not required to repay equity. 
B)  Interest is tax-deductible. 
C)  A company has an obligation to pay dividends. 
D)  Equity has a maturity date.

Question 19

What are long-term debts (liabilities) for corporations and governments?

Accepted Answer

A)  common shares 
B)  equity funds 
C)  bonds 
D)  preferred shares 
A)  common shares 
B)  equity funds 
C)  bonds 
D)  preferred shares

Question 20

What is risk management?

Accepted Answer

the process of identifying and

Which of the following would be an example of a capital expenditure for a superstore that specializes in outdoor grills and other items needed for outside dining?

Which of the following is NOT a technique for reducing the investment in inventory?

Which of the following is a drawback for a company when it goes public?

The major disadvantage of debt financing is the inability to deduct interest expenses for income tax purposes.

What is financial management?

Which of the following is a type of company that needs good cash management and more cash available as it has seasonal pattern of sales and receipts?

Capital budgeting is best described by which of the following?

What kind of budgeting would be used to make sure the company has enough money to purchase an additional warehouse when it achieves its growth goal?

Toronto Pneumatic Tools has changed its credit terms to encourage its buyers to pay their accounts receivable more quickly. Which of the following represents the policy that the financial manager has changed?

Which of the following is NOT one of the three key activities of the financial manager?

What are payments in the form of more shares to existing shareholders?

An IOU is most similar to which type of bank loan?

Which of the following are forecasts of the company's inflows and outflows of cash?

What are three important forms of long-term debt?

A mortgage loan is a long-term loan that uses real estate as collateral.

Which type of management is used to determine the most effective ways to acquire and use funds to achieve the company's goals?

In finance, what is the potential for loss?

Which of the following statements describes an advantage inherent in equity financing?

What are long-term debts (liabilities) for corporations and governments?

What is risk management?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Filters

Exam 18: Finance

Which of the following would be an example of a capital expenditure for a superstore that specializes in outdoor grills and other items needed for outside dining?

Which of the following is NOT a technique for reducing the investment in inventory?

Which of the following is a drawback for a company when it goes public?

The major disadvantage of debt financing is the inability to deduct interest expenses for income tax purposes.

What is financial management?

Which of the following is a type of company that needs good cash management and more cash available as it has seasonal pattern of sales and receipts?

Capital budgeting is best described by which of the following?

What kind of budgeting would be used to make sure the company has enough money to purchase an additional warehouse when it achieves its growth goal?

Toronto Pneumatic Tools has changed its credit terms to encourage its buyers to pay their accounts receivable more quickly. Which of the following represents the policy that the financial manager has changed?

Which of the following is NOT one of the three key activities of the financial manager?

What are payments in the form of more shares to existing shareholders?

An IOU is most similar to which type of bank loan?

Which of the following are forecasts of the company's inflows and outflows of cash?

What are three important forms of long-term debt?

A mortgage loan is a long-term loan that uses real estate as collateral.

Which type of management is used to determine the most effective ways to acquire and use funds to achieve the company's goals?

In finance, what is the potential for loss?

Which of the following statements describes an advantage inherent in equity financing?

What are long-term debts (liabilities) for corporations and governments?

What is risk management?

Political Environment

Economic Environment

Social Environment

Technological Environment

International Environment

Entrepreneurship and Small Business

Understanding the Business

Forms of Business Ownership

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Marketing

Creating Marketing Strategies

Achieving World-class Operations Management

Accounting for Financial Success

Understanding Money and the Canadian Financial System

Filters