Question 1

The funds that are kept by the firm out of profits and after dividends are paid are called which of the following?

Accepted Answer

A)  share equity 
B)  investor earnings 
C)  retained earnings 
D)  secondary earnings 
A)  share equity 
B)  investor earnings 
C)  retained earnings 
D)  secondary earnings

Question 2

In finance,what is the opportunity for profit?

Accepted Answer

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

Question 3

Why do companies prepare budgets?

Accepted Answer

to plan and control

Question 4

Give an example of internal equity financing.

Accepted Answer

The answer of Give an example of internal equity financing....

Question 5

Dividends are BEST described by which of the following?

Accepted Answer

A)  They are annual payments on bonds. 
B)  They are the earnings of the corporation. 
C)  They are payments to the shareholders from company earnings. 
D)  They are guaranteed payments to the common shareholders. 
A)  They are annual payments on bonds. 
B)  They are the earnings of the corporation. 
C)  They are payments to the shareholders from company earnings. 
D)  They are guaranteed payments to the common shareholders.

Question 6

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof.Which of the following activities might have allowed the business to continue operation?

Accepted Answer

A)  better cash maintenance 
B)  better cash targeting 
C)  better cash management 
D)  better cash capitalization 
A)  better cash maintenance 
B)  better cash targeting 
C)  better cash management 
D)  better cash capitalization

Question 7

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 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

Today,an organization's chief financial officer is expected to take the central role in establishing public trust.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

Financial managers constantly strive for a balance between which of the following?

Accepted Answer

A)  common and preferred shares 
B)  economic responsibility and social responsibility 
C)  cash and marketable securities 
D)  the opportunity for profit and the potential for loss 
A)  common and preferred shares 
B)  economic responsibility and social responsibility 
C)  cash and marketable securities 
D)  the opportunity for profit and the potential for loss

Question 12

A short-term forecast is also called an operating plan.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following statements BEST describes preferred shares?

Accepted Answer

A)  Preferred shares carry voting rights. 
B)  Preferred shares produce a fixed-amount dividend. 
C)  Preferred shareholders receive dividends after common shareholders. 
D)  Preferred shares can be owned only by upper management. 
A)  Preferred shares carry voting rights. 
B)  Preferred shares produce a fixed-amount dividend. 
C)  Preferred shareholders receive dividends after common shareholders. 
D)  Preferred shares can be owned only by upper management.

Question 14

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

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

Which of the following are a security 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 17

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

Accepted Answer

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

Question 18

____________________ loans are given on the basis of the firm's credit and the lender's previous experience with the firm.

Accepted Answer

The answer of ____________________ loans are given on the basis...

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is known as which of the following?

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

The funds that are kept by the firm out of profits and after dividends are paid are called which of the following?

In finance,what is the opportunity for profit?

Why do companies prepare budgets?

Give an example of internal equity financing.

Dividends are BEST described by which of the following?

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof.Which of the following activities might have allowed the business to continue operation?

Commercial paper 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?

Today,an organization's chief financial officer is expected to take the central role in establishing public trust.

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

Financial managers constantly strive for a balance between which of the following?

A short-term forecast is also called an operating plan.

Which of the following statements BEST describes preferred shares?

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

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

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

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

____________________ loans are given on the basis of the firm's credit and the lender's previous experience with the firm.

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

A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is known as which of the following?

understanding Evolving Economic Systems and Competition

the Global Marketplace and Governments’ Roles

Social Trends, social Responsibility, and Making Ethical Decisions in Business

Using Technology to Manage Information and for Business Success

Forms of Business Ownership

Entrepreneurship and Small Business

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Achieving World-class Operations Management

Understanding the Customer

Creating Marketing Strategies

Using Financial Information and Accounting

Understanding Money, financial Institutions, and the Securities Markets

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Exam 16: Managing the Firm’s Finances

The funds that are kept by the firm out of profits and after dividends are paid are called which of the following?

In finance,what is the opportunity for profit?

Why do companies prepare budgets?

Give an example of internal equity financing.

Dividends are BEST described by which of the following?

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof.Which of the following activities might have allowed the business to continue operation?

Commercial paper 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?

Today,an organization's chief financial officer is expected to take the central role in establishing public trust.

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

Financial managers constantly strive for a balance between which of the following?

A short-term forecast is also called an operating plan.

Which of the following statements BEST describes preferred shares?

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

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

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

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

____________________ loans are given on the basis of the firm's credit and the lender's previous experience with the firm.

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

A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is known as which of the following?

understanding Evolving Economic Systems and Competition

the Global Marketplace and Governments’ Roles

Social Trends, social Responsibility, and Making Ethical Decisions in Business

Using Technology to Manage Information and for Business Success

Forms of Business Ownership

Entrepreneurship and Small Business

Management and Leadership in Today’s Organizations

Designing Organizational Structures

Motivating Employees

Managing Human Resources and Labour Relations

Achieving World-class Operations Management

Understanding the Customer

Creating Marketing Strategies

Using Financial Information and Accounting

Understanding Money, financial Institutions, and the Securities Markets

Filters