Question 1

Long-term forecasts are also called tactical plans.

Accepted Answer

A) True 
 B)False

Question 2

Long-term forecasts that cover two to ten years and take a broader view of the firm's financial activities are known as which of the following?

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 3

____________________ credit is the extension of credit by the seller to the buyer between the time the buyer receives the goods or services and when it pays for them.

Accepted Answer

The answer of ____________________ credit is the extension of credit...

Question 4

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 5

The primary goal of the financial manager is BEST described by which of the following?

Accepted Answer

A)  He or she concentrates on short-term growth strategies. 
B)  He or she develops new goods and services for the company. 
C)  He or she ensures all employees get paid on a regular schedule. 
D)  He or she maximizes the value of the firm to its owners. 
A)  He or she concentrates on short-term growth strategies. 
B)  He or she develops new goods and services for the company. 
C)  He or she ensures all employees get paid on a regular schedule. 
D)  He or she maximizes the value of the firm to its owners.

Question 6

____________________ is the unsecured short-term debt offered by large,financially strong corporations.

Accepted Answer

The answer of ____________________ is the unsecured short-term debt offered...

Question 7

Which of the following allows insurance companies to predict the likelihood that a peril will occur?

Accepted Answer

A)  underwriting 
B)  deductibles 
C)  law of risks 
D)  law of large numbers 
A)  underwriting 
B)  deductibles 
C)  law of risks 
D)  law of large numbers

Question 8

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 firm 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 firm has an obligation to pay dividends. 
D)  Equity has a maturity date.

Question 9

Briefly define the risk-return trade-off.

Accepted Answer

a basic principle that holds t

Question 10

Linda's Kitchen is a bakery.Flour,sugar,eggs,milk,and chocolate would be included in which of the following 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 11

Long-term debt would be used to finance which of the following activities?

Accepted Answer

A)  to replace broken glass in a window 
B)  to buy new tablecloths for a restaurant 
C)  to provide customer with a cash discount 
D)  to pay for a few piece of equipment 
A)  to replace broken glass in a window 
B)  to buy new tablecloths for a restaurant 
C)  to provide customer with a cash discount 
D)  to pay for a few piece of equipment

Question 12

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 13

Esselte is one of the world's leading producers of office supplies.The company forecasts that its profits will double by the year 2012,and its financial manager will need to determine what should be done with the increased earnings.This forecast is part of which of the following activities?

Accepted Answer

A)  the company's marketing plan 
B)  the company's strategic plan (long-term forecast) 
C)  the company's operating plan 
D)  the company's production budget 
A)  the company's marketing plan 
B)  the company's strategic plan (long-term forecast) 
C)  the company's operating plan 
D)  the company's production budget

Question 14

In which of the following industries are you most likely to find factoring being used?

Accepted Answer

A)  the tire industry 
B)  the fast-food industry 
C)  the soft drink industry 
D)  the appliance industry 
A)  the tire industry 
B)  the fast-food industry 
C)  the soft drink industry 
D)  the appliance industry

Question 15

Business loans available from commercial banks with terms generally five to twelve years and secured or unsecured are called which of the following?

Accepted Answer

A)  collateral loans 
B)  mortgage loans 
C)  term loans 
D)  line of credit loans 
A)  collateral loans 
B)  mortgage loans 
C)  term loans 
D)  line of credit loans

Question 16

Which of the following are forecasts for outlays for fixed assets,usually covering a period of several years?

Accepted Answer

A)  tactical budgets 
B)  operating budgets 
C)  capital budgets 
D)  monetary-policy budgets 
A)  tactical budgets 
B)  operating budgets 
C)  capital budgets 
D)  monetary-policy budgets

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Selling a firm's accounts receivables to a financial institution at a discount is called countertrading.

Accepted Answer

A) True 
 B)False

Question 19

In seeking a balance between the opportunity for profit and the potential for loss,a financial manager is dealing with which of the following concepts?

Accepted Answer

A)  potential profit trade-off 
B)  sales-profit trade-off 
C)  risk-return trade-off 
D)  profit-loss trade-off 
A)  potential profit trade-off 
B)  sales-profit trade-off 
C)  risk-return trade-off 
D)  profit-loss trade-off

Question 20

One way to transfer risk is through insurance.

Accepted Answer

A) True 
 B)False

Long-term forecasts are also called tactical plans.

Long-term forecasts that cover two to ten years and take a broader view of the firm's financial activities are known as which of the following?

____________________ credit is the extension of credit by the seller to the buyer between the time the buyer receives the goods or services and when it pays for them.

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

The primary goal of the financial manager is BEST described by which of the following?

____________________ is the unsecured short-term debt offered by large,financially strong corporations.

Which of the following allows insurance companies to predict the likelihood that a peril will occur?

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

Briefly define the risk-return trade-off.

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

Long-term debt would be used to finance which of the following activities?

Which of the following statements BEST describes preferred shares?

Esselte is one of the world's leading producers of office supplies.The company forecasts that its profits will double by the year 2012,and its financial manager will need to determine what should be done with the increased earnings.This forecast is part of which of the following activities?

In which of the following industries are you most likely to find factoring being used?

Business loans available from commercial banks with terms generally five to twelve years and secured or unsecured are called which of the following?

Which of the following are forecasts for outlays for fixed assets,usually covering a period of several years?

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

Selling a firm's accounts receivables to a financial institution at a discount is called countertrading.

In seeking a balance between the opportunity for profit and the potential for loss,a financial manager is dealing with which of the following concepts?

One way to transfer risk is through insurance.

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

Long-term forecasts are also called tactical plans.

Long-term forecasts that cover two to ten years and take a broader view of the firm's financial activities are known as which of the following?

____________________ credit is the extension of credit by the seller to the buyer between the time the buyer receives the goods or services and when it pays for them.

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

The primary goal of the financial manager is BEST described by which of the following?

____________________ is the unsecured short-term debt offered by large,financially strong corporations.

Which of the following allows insurance companies to predict the likelihood that a peril will occur?

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

Briefly define the risk-return trade-off.

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

Long-term debt would be used to finance which of the following activities?

Which of the following statements BEST describes preferred shares?

Esselte is one of the world's leading producers of office supplies.The company forecasts that its profits will double by the year 2012,and its financial manager will need to determine what should be done with the increased earnings.This forecast is part of which of the following activities?

In which of the following industries are you most likely to find factoring being used?

Business loans available from commercial banks with terms generally five to twelve years and secured or unsecured are called which of the following?

Which of the following are forecasts for outlays for fixed assets,usually covering a period of several years?

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

Selling a firm's accounts receivables to a financial institution at a discount is called countertrading.

In seeking a balance between the opportunity for profit and the potential for loss,a financial manager is dealing with which of the following concepts?

One way to transfer risk is through insurance.

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