Question 1

Linda's Kitchen is a bakery. Flour, sugar, eggs, milk, and chocolate would be included in which type of expenses?

Accepted Answer

A)  operating expenses 
B)  general expenses 
C)  managerial expenses 
D)  administrative expenses 
A)  operating expenses 
B)  general expenses 
C)  managerial expenses 
D)  administrative expenses

Question 2

Which of the following top management positions is more highly visible and active in company management than ever, being instrumental in developing and implementing the company's strategic vision?

Accepted Answer

A)  CIO 
B)  VP of accounting 
C)  CFO 
D)  VP of IT 
A)  CIO 
B)  VP of accounting 
C)  CFO 
D)  VP of IT

Question 3

Equity capital is made up of a combination of share ownership and debt financing.

Accepted Answer

A) True 
 B)False

Question 4

A financial plan enables the company to estimate the amount and timing of its investment and financing needs.

Accepted Answer

A) True 
 B)False

Question 5

In what industry do companies pay little or no dividends to shareholders in order to finance growth?

Accepted Answer

A)  technology 
B)  mining 
C)  oil 
D)  automotive 
A)  technology 
B)  mining 
C)  oil 
D)  automotive

Question 6

What are long-term forecasts that cover two to ten years and take a broader view of the company's financial activities?

Accepted Answer

A)  tactical plans 
B)  operating plans 
C)  strategic plans 
D)  projected plans 
A)  tactical plans 
B)  operating plans 
C)  strategic plans 
D)  projected plans

Question 7

Which of the following is NOT one of the three important forms of long-term debt?

Accepted Answer

A)  trade credit 
B)  bonds 
C)  mortgage loans 
D)  term loans 
A)  trade credit 
B)  bonds 
C)  mortgage loans 
D)  term loans

Question 8

In finance, what is the opportunity for profit?

Accepted Answer

A)  value 
B)  risk 
C)  potential 
D)  return 
A)  value 
B)  risk 
C)  potential 
D)  return

Question 9

Another term for the net profit of a company is retained earnings.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following are securities that represent an ownership interest in a corporation and give the holders voting rights?

Accepted Answer

A)  treasury shares 
B)  common shares 
C)  par value shares 
D)  preferred shares 
A)  treasury shares 
B)  common shares 
C)  par value shares 
D)  preferred shares

Question 11

The three main types of unsecured short-term loans are trade credit, bank loans and commercial paper.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following terms represents the stated interest rate of a bond?

Accepted Answer

A)  liquidity rate 
B)  market rate 
C)  prime rate 
D)  coupon rate 
A)  liquidity rate 
B)  market rate 
C)  prime rate 
D)  coupon rate

Question 13

What is the major drawback to debt financing?

Accepted Answer

The answer of What is the major drawback to debt...

Question 14

Commercial paper is best described by which of the following?

Accepted Answer

A)  It is the same thing as accounts receivable recorded in the ledger. 
B)  It is a type of IOU. 
C)  It is typically issued by stakeholders. 
D)  It is a type of secured debt. 
A)  It is the same thing as accounts receivable recorded in the ledger. 
B)  It is a type of IOU. 
C)  It is typically issued by stakeholders. 
D)  It is a type of secured debt.

Question 15

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are known as which of the following?

Accepted Answer

A)  negotiable assets 
B)  intangible assets 
C)  pledges 
D)  collateral 
A)  negotiable assets 
B)  intangible assets 
C)  pledges 
D)  collateral

Question 16

Accounts receivable or inventory usually secures short-term secured loans.

Accepted Answer

A) True 
 B)False

Question 17

In finance, the opportunity for a profit is called return.

Accepted Answer

A) True 
 B)False

Question 18

What is a life insurance policy paid for by the business and naming the company as beneficiary if the employee dies?

Accepted Answer

A)  business interruption insurance 
B)  key person life insurance 
C)  professional liability insurance 
D)  fidelity insurance 
A)  business interruption insurance 
B)  key person life insurance 
C)  professional liability insurance 
D)  fidelity insurance

Question 19

The key activities of the financial manager are financial planning, investment, and financing.

Accepted Answer

A) True 
 B)False

Question 20

Shameika Olson owns a bookstore and has arranged a business loan with the bank where she has her business account. The terms of the loan allow her to borrow up to $12,000 within the next year. She must pay interest only on the unpaid loan balance. What has Olson arranged?

Accepted Answer

A)  line of credit 
B)  secured loan 
C)  collateralized loan 
D)  mortgage loan 
A)  line of credit 
B)  secured loan 
C)  collateralized loan 
D)  mortgage loan

Linda's Kitchen is a bakery. Flour, sugar, eggs, milk, and chocolate would be included in which type of expenses?

Which of the following top management positions is more highly visible and active in company management than ever, being instrumental in developing and implementing the company's strategic vision?

Equity capital is made up of a combination of share ownership and debt financing.

A financial plan enables the company to estimate the amount and timing of its investment and financing needs.

In what industry do companies pay little or no dividends to shareholders in order to finance growth?

What are long-term forecasts that cover two to ten years and take a broader view of the company's financial activities?

Which of the following is NOT one of the three important forms of long-term debt?

In finance, what is the opportunity for profit?

Another term for the net profit of a company is retained earnings.

Which of the following are securities that represent an ownership interest in a corporation and give the holders voting rights?

The three main types of unsecured short-term loans are trade credit, bank loans and commercial paper.

Which of the following terms represents the stated interest rate of a bond?

What is the major drawback to debt financing?

Commercial paper is best described by which of the following?

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are known as which of the following?

Accounts receivable or inventory usually secures short-term secured loans.

In finance, the opportunity for a profit is called return.

What is a life insurance policy paid for by the business and naming the company as beneficiary if the employee dies?

The key activities of the financial manager are financial planning, investment, and financing.

Shameika Olson owns a bookstore and has arranged a business loan with the bank where she has her business account. The terms of the loan allow her to borrow up to $12,000 within the next year. She must pay interest only on the unpaid loan balance. What has Olson arranged?

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

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Exam 18: Finance

Linda's Kitchen is a bakery. Flour, sugar, eggs, milk, and chocolate would be included in which type of expenses?

Which of the following top management positions is more highly visible and active in company management than ever, being instrumental in developing and implementing the company's strategic vision?

Equity capital is made up of a combination of share ownership and debt financing.

A financial plan enables the company to estimate the amount and timing of its investment and financing needs.

In what industry do companies pay little or no dividends to shareholders in order to finance growth?

What are long-term forecasts that cover two to ten years and take a broader view of the company's financial activities?

Which of the following is NOT one of the three important forms of long-term debt?

In finance, what is the opportunity for profit?

Another term for the net profit of a company is retained earnings.

Which of the following are securities that represent an ownership interest in a corporation and give the holders voting rights?

The three main types of unsecured short-term loans are trade credit, bank loans and commercial paper.

Which of the following terms represents the stated interest rate of a bond?

What is the major drawback to debt financing?

Commercial paper is best described by which of the following?

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are known as which of the following?

Accounts receivable or inventory usually secures short-term secured loans.

In finance, the opportunity for a profit is called return.

What is a life insurance policy paid for by the business and naming the company as beneficiary if the employee dies?

The key activities of the financial manager are financial planning, investment, and financing.

Shameika Olson owns a bookstore and has arranged a business loan with the bank where she has her business account. The terms of the loan allow her to borrow up to $12,000 within the next year. She must pay interest only on the unpaid loan balance. What has Olson arranged?

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