Question 1

What are three important forms of long-term debt?

Accepted Answer

A)  trade credit,accounts payable,and bank loans 
B)  term loans,mortgage loans,and bonds 
C)  accounts payable,notes payable,and commercial paper 
D)  treasury bills,certificates of deposit,and accounts payable 
A)  trade credit,accounts payable,and bank loans 
B)  term loans,mortgage loans,and bonds 
C)  accounts payable,notes payable,and commercial paper 
D)  treasury bills,certificates of deposit,and accounts payable

Question 2

Which of the following is a company-wide,strategic approach to indentifying,monitoring,and managing a company's risk?

Accepted Answer

A)  enterprise risk management 
B)  business interruption insurance 
C)  key person life insurance 
D)  professional liability insurance 
A)  enterprise risk management 
B)  business interruption insurance 
C)  key person life insurance 
D)  professional liability insurance

Question 3

Which of the following are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed?

Accepted Answer

A)  revolving accounts 
B)  credit credentials 
C)  credit terms 
D)  liability procedures 
A)  revolving accounts 
B)  credit credentials 
C)  credit terms 
D)  liability procedures

Question 4

For a risk to be insurable,it must be under the control of the insured.

Accepted Answer

A) True 
 B)False

Question 5

Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.

Accepted Answer

A) True 
 B)False

Question 6

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

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

When Magna Manufacturing sells hand screwdriver sets to Malloy Building Supply Company,Magna bills the tool manufacturer for the screwdriver purchase with terms of payment,which specify when the account is due.This type of unsecured loan is known as which of the following?

Accepted Answer

A)  trade credit 
B)  borrower's credit 
C)  product credit 
D)  revolving credit 
A)  trade credit 
B)  borrower's credit 
C)  product credit 
D)  revolving credit

Question 9

Capital ____________________ is the process of evaluating long-term investments as to returns and their priorities in maximizing the firm's value.

Accepted Answer

The answer of Capital ____________________ is the process of evaluating...

Question 10

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called which of the following?

Accepted Answer

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

Question 11

A term loan is a loan with a maturity of less than a year.

Accepted Answer

A) True 
 B)False

Question 12

What is the major drawback to debt financing?

Accepted Answer

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

Question 13

A secured loan requires the borrower to pledge specific assets as ____________________ or security.

Accepted Answer

The answer of A secured loan requires the borrower to...

Question 14

____________________ are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts.

Accepted Answer

The answer of ____________________ are formal written forecasts of revenues...

Question 15

A firm's basic approach to paying dividends can greatly affect which of the following?

Accepted Answer

A)  its share prices 
B)  its span of financial management 
C)  its mission statement 
D)  its unity of fiscal policy 
A)  its share prices 
B)  its span of financial management 
C)  its mission statement 
D)  its unity of fiscal policy

Question 16

Trade credit is credit extended to the buyer by the seller.It is entered in the buyer's books as an account receivable.

Accepted Answer

A) True 
 B)False

Question 17

Private individual investors who sometimes provide venture capital to small firms in need of equity capital are known as which of the following?

Accepted Answer

A)  angel investors 
B)  entrepreneur backers 
C)  opportunists 
D)  benefactors 
A)  angel investors 
B)  entrepreneur backers 
C)  opportunists 
D)  benefactors

Question 18

Preferred shares are a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

Accepted Answer

A) True 
 B)False

Question 19

Albee Construction Company,a financially strong corporation that builds roads and bridges,finances its equipment leases by issuing unsecured short-term debt,which 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 20

____________________ represent sales for which the firm has not been paid.

Accepted Answer

The answer of ____________________ represent sales for which the firm...

What are three important forms of long-term debt?

Which of the following is a company-wide,strategic approach to indentifying,monitoring,and managing a company's risk?

Which of the following are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed?

For a risk to be insurable,it must be under the control of the insured.

Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.

What are the four major ways of dealing with risk?

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

When Magna Manufacturing sells hand screwdriver sets to Malloy Building Supply Company,Magna bills the tool manufacturer for the screwdriver purchase with terms of payment,which specify when the account is due.This type of unsecured loan is known as which of the following?

Capital ____________________ is the process of evaluating long-term investments as to returns and their priorities in maximizing the firm's value.

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called which of the following?

A term loan is a loan with a maturity of less than a year.

What is the major drawback to debt financing?

A secured loan requires the borrower to pledge specific assets as ____________________ or security.

____________________ are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts.

A firm's basic approach to paying dividends can greatly affect which of the following?

Trade credit is credit extended to the buyer by the seller.It is entered in the buyer's books as an account receivable.

Private individual investors who sometimes provide venture capital to small firms in need of equity capital are known as which of the following?

Preferred shares are a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

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

____________________ represent sales for which the firm has not been paid.

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

What are three important forms of long-term debt?

Which of the following is a company-wide,strategic approach to indentifying,monitoring,and managing a company's risk?

Which of the following are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed?

For a risk to be insurable,it must be under the control of the insured.

Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.

What are the four major ways of dealing with risk?

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

When Magna Manufacturing sells hand screwdriver sets to Malloy Building Supply Company,Magna bills the tool manufacturer for the screwdriver purchase with terms of payment,which specify when the account is due.This type of unsecured loan is known as which of the following?

Capital ____________________ is the process of evaluating long-term investments as to returns and their priorities in maximizing the firm's value.

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called which of the following?

A term loan is a loan with a maturity of less than a year.

What is the major drawback to debt financing?

A secured loan requires the borrower to pledge specific assets as ____________________ or security.

____________________ are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts.

A firm's basic approach to paying dividends can greatly affect which of the following?

Trade credit is credit extended to the buyer by the seller.It is entered in the buyer's books as an account receivable.

Private individual investors who sometimes provide venture capital to small firms in need of equity capital are known as which of the following?

Preferred shares are a form of debt financing because the dividend must be paid before dividends can be paid to the equity owners.

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

____________________ represent sales for which the firm has not been paid.

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