Question 1

Which of the following are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts?

Accepted Answer

A)  profit and loss statements 
B)  business predictions 
C)  budgets 
D)  financial forecasts 
A)  profit and loss statements 
B)  business predictions 
C)  budgets 
D)  financial forecasts

Question 2

As part of the task of managing cash flows, financial managers perform which of the following activities?

Accepted Answer

A)  They collect financial data. 
B)  They present financial data. 
C)  They oversee the collection of accounts receivable. 
D)  They hire accountants. 
A)  They collect financial data. 
B)  They present financial data. 
C)  They oversee the collection of accounts receivable. 
D)  They hire accountants.

Question 3

Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt. This is known as which of the following?

Accepted Answer

A)  revolving credit 
B)  collateralized loans 
C)  commercial paper 
D)  corporate issues 
A)  revolving credit 
B)  collateralized loans 
C)  commercial paper 
D)  corporate issues

Question 4

In what time frame are dividends usually paid out?

Accepted Answer

A)  monthly 
B)  quarterly 
C)  every 6 months 
D)  yearly 
A)  monthly 
B)  quarterly 
C)  every 6 months 
D)  yearly

Question 5

Financial management is best described by which of the following?

Accepted Answer

A)  It is typically performed by a company's CEO. 
B)  It uses financial statements prepared by accountants to make financial decisions. 
C)  Its purpose is to collect and present financial data. 
D)  It is completely different from accounting. 
A)  It is typically performed by a company's CEO. 
B)  It uses financial statements prepared by accountants to make financial decisions. 
C)  Its purpose is to collect and present financial data. 
D)  It is completely different from accounting.

Question 6

Which of the following statements best describes preferred shares?

Accepted Answer

A)  Preferred shareholders are paid before other debt holders in the event of company dissolution. 
B)  The dividends for preferred shares are a variable amount. 
C)  Preferred shares are less costly than debt financing. 
D)  Preferred shareholders have to be paid annually. 
A)  Preferred shareholders are paid before other debt holders in the event of company dissolution. 
B)  The dividends for preferred shares are a variable amount. 
C)  Preferred shares are less costly than debt financing. 
D)  Preferred shareholders have to be paid annually.

Question 7

What is an agreement between a bank and a person or business that specifies the maximum amount of short-term borrowing the bank will make available to that person or business?

Accepted Answer

A)  credit-line loan 
B)  line of credit 
C)  unsecured loan 
D)  commercial paper loan 
A)  credit-line loan 
B)  line of credit 
C)  unsecured loan 
D)  commercial paper loan

Question 8

The primary goal of financial managers is best described by which of the following?

Accepted Answer

A)  They concentrate on short-term growth strategies. 
B)  They develop new goods and services for the company. 
C)  They ensure all employees are paid on a regular schedule. 
D)  They maximize the value of the company to its owners. 
A)  They concentrate on short-term growth strategies. 
B)  They develop new goods and services for the company. 
C)  They ensure all employees are paid on a regular schedule. 
D)  They maximize the value of the company to its owners.

Question 9

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement?

Accepted Answer

A)  Christmas tree farm 
B)  envelope manufacturer 
C)  manufacturer of integrated circuits 
D)  poultry producer 
A)  Christmas tree farm 
B)  envelope manufacturer 
C)  manufacturer of integrated circuits 
D)  poultry producer

Question 10

Financial managers often shift temporary funds from chequing accounts to which of the following to earn higher interest returns?

Accepted Answer

A)  administrative securities 
B)  commercial securities 
C)  marketable securities 
D)  strategic securities 
A)  administrative securities 
B)  commercial securities 
C)  marketable securities 
D)  strategic securities

Question 11

List three common reasons that companies make capital expenditures.

Accepted Answer

to expand, to replac

Question 12

Briefly define the risk-return trade-off.

Accepted Answer

a basic principle that holds t

Question 13

Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a long-term loan using real estate or other assets as collateral?

Accepted Answer

A)  unsecured loan 
B)  discount loan 
C)  mortgage loan 
D)  line of credit loan 
A)  unsecured loan 
B)  discount loan 
C)  mortgage loan 
D)  line of credit loan

Question 15

Which of the following are often called a hybrid form of financing as they have characteristics of both debt and equity?

Accepted Answer

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

Question 16

Which of the following is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before its strongest sales period?

Accepted Answer

A)  collateral loan 
B)  unsecured bank loan 
C)  trade credit 
D)  secured bank loan 
A)  collateral loan 
B)  unsecured bank loan 
C)  trade credit 
D)  secured bank loan

Question 17

What is most commonly used for collateral with secured loans?

Accepted Answer

accounts r

Question 18

Which of the following do financial managers use to describe the inflow and outflow of cash?

Accepted Answer

A)  cash flows 
B)  financial flows 
C)  revenue streams 
D)  sales revenues 
A)  cash flows 
B)  financial flows 
C)  revenue streams 
D)  sales revenues

Question 19

Lines of credit are short-term loans that are secured by collateral.

Accepted Answer

A) True 
 B)False

Question 20

What are the four major ways of dealing with risk?

Accepted Answer

A)  control, retention, transfer, and avoidance 
B)  avoidance, retention, control, and retirement 
C)  control, retention, retirement, and avoidance 
D)  avoidance, retention, retrenchment, and control 
A)  control, retention, transfer, and avoidance 
B)  avoidance, retention, control, and retirement 
C)  control, retention, retirement, and avoidance 
D)  avoidance, retention, retrenchment, and control

Which of the following are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts?

As part of the task of managing cash flows, financial managers perform which of the following activities?

Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt. This is known as which of the following?

In what time frame are dividends usually paid out?

Financial management is best described by which of the following?

Which of the following statements best describes preferred shares?

What is an agreement between a bank and a person or business that specifies the maximum amount of short-term borrowing the bank will make available to that person or business?

The primary goal of financial managers is best described by which of the following?

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement?

Financial managers often shift temporary funds from chequing accounts to which of the following to earn higher interest returns?

List three common reasons that companies make capital expenditures.

Briefly define the risk-return trade-off.

Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities.

Which of the following is a long-term loan using real estate or other assets as collateral?

Which of the following are often called a hybrid form of financing as they have characteristics of both debt and equity?

Which of the following is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before its strongest sales period?

What is most commonly used for collateral with secured loans?

Which of the following do financial managers use to describe the inflow and outflow of cash?

Lines of credit are short-term loans that are secured by collateral.

What are the four major ways of dealing with risk?

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

Which of the following are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts?

As part of the task of managing cash flows, financial managers perform which of the following activities?

Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt. This is known as which of the following?

In what time frame are dividends usually paid out?

Financial management is best described by which of the following?

Which of the following statements best describes preferred shares?

What is an agreement between a bank and a person or business that specifies the maximum amount of short-term borrowing the bank will make available to that person or business?

The primary goal of financial managers is best described by which of the following?

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement?

Financial managers often shift temporary funds from chequing accounts to which of the following to earn higher interest returns?

List three common reasons that companies make capital expenditures.

Briefly define the risk-return trade-off.

Treasury bills, certificates of deposit, and mortgage loans are the most popular marketable securities.

Which of the following is a long-term loan using real estate or other assets as collateral?

Which of the following are often called a hybrid form of financing as they have characteristics of both debt and equity?

Which of the following is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before its strongest sales period?

What is most commonly used for collateral with secured loans?

Which of the following do financial managers use to describe the inflow and outflow of cash?

Lines of credit are short-term loans that are secured by collateral.

What are the four major ways of dealing with risk?

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