Question 1

The goal of financial managers who focus on current assets is to

Accepted Answer

A)  maximize returns on short-term assets. 
B)  minimize returns on short-term liabilities. 
C)  minimize returns on short-term assets. 
D)  decrease returns on working capital. 
E)  have as much cash as possible. 
A)  maximize returns on short-term assets. 
B)  minimize returns on short-term liabilities. 
C)  minimize returns on short-term assets. 
D)  decrease returns on working capital. 
E)  have as much cash as possible. A

Question 2

Bonds can be issued only by corporations.

Accepted Answer

A) True 
 B)False  False

Question 3

The process of deciding what fixed assets,projects,and investments will earn profits for the firm beyond the costs necessary to fund them is called

Accepted Answer

A)  taking out a loan. 
B)  factoring. 
C)  assessing risk. 
D)  capital budgeting. 
E)  investing in Eurodollars. 
A)  taking out a loan. 
B)  factoring. 
C)  assessing risk. 
D)  capital budgeting. 
E)  investing in Eurodollars. D

Question 4

An operating lease is a long-term contract that shows up on the balance sheet as an asset and a liability.

Accepted Answer

A) True 
 B)False

Question 5

The longer a project or asset is expected to last,the smaller is its potential risk.

Accepted Answer

A) True 
 B)False

Question 6

_________ and __________ are important measures to financial managers because they need to know how their stocks are performing compared to other stocks.

Accepted Answer

A)  Preferred stock,common stock 
B)  Bull market,bear market 
C)  Averages,indices 
D)  Indices,stock market 
E)  Preferred stock,averages 
A)  Preferred stock,common stock 
B)  Bull market,bear market 
C)  Averages,indices 
D)  Indices,stock market 
E)  Preferred stock,averages

Question 7

During the financial meltdown beginning in 2008,why did banks become unwilling to lend money to businesses?

Accepted Answer

During and after the financial crisis,ba

Question 8

The amount of money budgeted for the purchase of long-term assets is called the

Accepted Answer

A)  master budget. 
B)  year's budget. 
C)  current budget. 
D)  fixed budget. 
E)  capital budget. 
A)  master budget. 
B)  year's budget. 
C)  current budget. 
D)  fixed budget. 
E)  capital budget.

Question 9

If a real estate developer borrows $100,000 from a bank and ends up paying back $120,000,the $100,000 represents the

Accepted Answer

A)  collateral. 
B)  interest. 
C)  down payment. 
D)  principal. 
E)  security. 
A)  collateral. 
B)  interest. 
C)  down payment. 
D)  principal. 
E)  security.

Question 10

Which of the following is an example of a long-term liability?

Accepted Answer

A)  Stock 
B)  Bond 
C)  Marketable security 
D)  Eurodollar 
E)  Trade credit 
A)  Stock 
B)  Bond 
C)  Marketable security 
D)  Eurodollar 
E)  Trade credit

Question 11

Which market exists so that corporations can sell stocks directly to the public?

Accepted Answer

A)  The singular market 
B)  Tertiary markets 
C)  Multiple markets 
D)  Secondary markets 
E)  The primary market 
A)  The singular market 
B)  Tertiary markets 
C)  Multiple markets 
D)  Secondary markets 
E)  The primary market

Question 12

The following are types of bonds except

Accepted Answer

A)  serial. 
B)  commercial. 
C)  secured. 
D)  floating-rate. 
E)  unsecured. 
A)  serial. 
B)  commercial. 
C)  secured. 
D)  floating-rate. 
E)  unsecured.

Question 13

The par value is the interest rate on a bond.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a current asset?

Accepted Answer

A)  Accrued taxes 
B)  Short-term bank loans 
C)  Accounts payable 
D)  Accounts receivable 
E)  Accrued salaries 
A)  Accrued taxes 
B)  Short-term bank loans 
C)  Accounts payable 
D)  Accounts receivable 
E)  Accrued salaries

Question 15

Commercial paper is issued by large companies and backed by collateral.

Accepted Answer

A) True 
 B)False

Question 16

If the interest rate on a loan changes according to the daily average of the prime rate over the life of the loan,the interest rate is said to be

Accepted Answer

A)  floating. 
B)  non-variable. 
C)  fixed. 
D)  sporadic. 
E)  flexible. 
A)  floating. 
B)  non-variable. 
C)  fixed. 
D)  sporadic. 
E)  flexible.

Question 17

An investment banker sells securities for corporations in secondary markets.

Accepted Answer

A) True 
 B)False

Question 18

Unless fixed assets are continually reevaluated for appropriateness,

Accepted Answer

A)  businesses lose their competitive edge. 
B)  companies must pay back earnings. 
C)  equity increases. 
D)  retained earnings grow. 
E)  labor costs increase. 
A)  businesses lose their competitive edge. 
B)  companies must pay back earnings. 
C)  equity increases. 
D)  retained earnings grow. 
E)  labor costs increase.

Question 19

In organized exchanges,investors buy and sell only for their own accounts.

Accepted Answer

A) True 
 B)False

Question 20

If Linda Wilson borrows $20,000 to buy a car and ends up paying the lender a total of $24,000,the $4,000 difference represents the

Accepted Answer

A)  principal. 
B)  collateral. 
C)  security. 
D)  discount. 
E)  interest. 
A)  principal. 
B)  collateral. 
C)  security. 
D)  discount. 
E)  interest.

The goal of financial managers who focus on current assets is to

Bonds can be issued only by corporations.

The process of deciding what fixed assets,projects,and investments will earn profits for the firm beyond the costs necessary to fund them is called

An operating lease is a long-term contract that shows up on the balance sheet as an asset and a liability.

The longer a project or asset is expected to last,the smaller is its potential risk.

_ and __ are important measures to financial managers because they need to know how their stocks are performing compared to other stocks.

During the financial meltdown beginning in 2008,why did banks become unwilling to lend money to businesses?

The amount of money budgeted for the purchase of long-term assets is called the

If a real estate developer borrows $100,000 from a bank and ends up paying back $120,000,the $100,000 represents the

Which of the following is an example of a long-term liability?

Which market exists so that corporations can sell stocks directly to the public?

The following are types of bonds except

The par value is the interest rate on a bond.

Which of the following is a current asset?

Commercial paper is issued by large companies and backed by collateral.

If the interest rate on a loan changes according to the daily average of the prime rate over the life of the loan,the interest rate is said to be

An investment banker sells securities for corporations in secondary markets.

Unless fixed assets are continually reevaluated for appropriateness,

In organized exchanges,investors buy and sell only for their own accounts.

If Linda Wilson borrows $20,000 to buy a car and ends up paying the lender a total of $24,000,the $4,000 difference represents the

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Filters

Exam 16: Financial Management and Securities Markets

The goal of financial managers who focus on current assets is to

Bonds can be issued only by corporations.

The process of deciding what fixed assets,projects,and investments will earn profits for the firm beyond the costs necessary to fund them is called

An operating lease is a long-term contract that shows up on the balance sheet as an asset and a liability.

The longer a project or asset is expected to last,the smaller is its potential risk.

_________ and __________ are important measures to financial managers because they need to know how their stocks are performing compared to other stocks.

During the financial meltdown beginning in 2008,why did banks become unwilling to lend money to businesses?

The amount of money budgeted for the purchase of long-term assets is called the

If a real estate developer borrows $100,000 from a bank and ends up paying back $120,000,the $100,000 represents the

Which of the following is an example of a long-term liability?

Which market exists so that corporations can sell stocks directly to the public?

The following are types of bonds except

The par value is the interest rate on a bond.

Which of the following is a current asset?

Commercial paper is issued by large companies and backed by collateral.

If the interest rate on a loan changes according to the daily average of the prime rate over the life of the loan,the interest rate is said to be

An investment banker sells securities for corporations in secondary markets.

Unless fixed assets are continually reevaluated for appropriateness,

In organized exchanges,investors buy and sell only for their own accounts.

If Linda Wilson borrows $20,000 to buy a car and ends up paying the lender a total of $24,000,the $4,000 difference represents the

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Options for Organizing Business

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Filters

_ and __ are important measures to financial managers because they need to know how their stocks are performing compared to other stocks.