Question 1

The term used to describe the benefits produced by a merger or acquisition is _____.

Accepted Answer

A)  partnership 
B)  leverage 
C)  synergy 
D)  profit 
A)  partnership 
B)  leverage 
C)  synergy 
D)  profit

Question 2

Randy works in the financial division of his company and is responsible for preparing monetary forecasts and analyzing major investment decisions. What is Randy's title?

Accepted Answer

A)  Treasurer 
B)  Chief financial officer 
C)  Vice president for financial management 
D)  Controller 
A)  Treasurer 
B)  Chief financial officer 
C)  Vice president for financial management 
D)  Controller

Question 3

List the major sources of short-term and long-term funds.

Accepted Answer

The major sources of short-term funds ar

Question 4

A(n) _____ is a document that specifies the funds a firm will need for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds.

Accepted Answer

A)  asset management plan 
B)  leverage plan 
C)  strategic plan 
D)  financial plan 
A)  asset management plan 
B)  leverage plan 
C)  strategic plan 
D)  financial plan

Question 5

Virtually, all financial decisions involve a trade-off between risk and return.

Accepted Answer

A) True 
 B)False

Question 6

A(n) _____ is a transaction in which one company buys another.

Accepted Answer

A)  acquisition 
B)  merger 
C)  takeover 
D)  synergy 
A)  acquisition 
B)  merger 
C)  takeover 
D)  synergy

Question 7

MATCHING
Complete the following using the terms listed.
-_____ are low-risk securities that either have short maturities or can easily be sold in secondary markets.

Accepted Answer

A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds 
A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds

Question 8

MATCHING
Complete the following using the terms listed.
-A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n) _____.

Accepted Answer

A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds 
A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds

Question 9

Describe hedge funds.

Accepted Answer

Hedge funds are private investment compa

Question 10

Financial plans that focus on projections no more than a year or two in the future are known as strategic plans.

Accepted Answer

A) True 
 B)False

Question 11

In most firms, the controller is the chief accounting manager.

Accepted Answer

A) True 
 B)False

Question 12

Why do firms divest assets?

Accepted Answer

Sometimes divestitures result from prior

Question 13

Explain how the cash inflows and outflows of a business are similar to those of a household.

Accepted Answer

The members of a household depend on wee

Question 14

MATCHING
Complete the following using the terms listed.
-Certificates of indebtedness sold to raise long-term funds for a corporation or government agency are known as _____.

Accepted Answer

A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds 
A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds

Question 15

Kevin's company needs to obtain funds in order to keep the business going; however, she does not want stockholders influencing the direction of her company. What type of financing should Kevin acquire?

Accepted Answer

A)  Angel investment 
B)  Venture capital 
C)  Debt capital 
D)  Equity capital 
A)  Angel investment 
B)  Venture capital 
C)  Debt capital 
D)  Equity capital

Question 16

Grace is the financial manager for Branson Inc. and has decided to raise additional funds for the company by raising equity capital. She might do so by _____.

Accepted Answer

A)  selling bonds 
B)  persuading existing owners to contribute additional funds 
C)  selling marketable securities 
D)  establishing a line of credit with a local bank 
A)  selling bonds 
B)  persuading existing owners to contribute additional funds 
C)  selling marketable securities 
D)  establishing a line of credit with a local bank

Question 17

MATCHING
Complete the following using the terms listed.
-The process by which decisions are made regarding investments in long-lived assets is _____.

Accepted Answer

A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds 
A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds

Question 18

MATCHING
Complete the following using the terms listed.
-A(n) _____ is an executive who develops and implements a firm's financial plan and determines the most appropriate sources and uses of funds.

Accepted Answer

A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds 
A) Venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)Equity capital
G)financial plan
H)leveraged buyout
I)private equity funds
J)divestiture
K)Marketable securities
L)financial manager
M)tender offer
N)Trade credit
O)leverage
P)capital structure
Q)Asset intensity
R)bonds

Question 19

In the context of the role of the financial manager, who among the following reports directly to the chief financial officer?

Accepted Answer

A)  The CEO 
B)  The COO 
C)  The treasurer 
D)  The investor 
A)  The CEO 
B)  The COO 
C)  The treasurer 
D)  The investor

The term used to describe the benefits produced by a merger or acquisition is _____.

Randy works in the financial division of his company and is responsible for preparing monetary forecasts and analyzing major investment decisions. What is Randy's title?

List the major sources of short-term and long-term funds.

A(n) _____ is a document that specifies the funds a firm will need for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds.

Virtually, all financial decisions involve a trade-off between risk and return.

A(n) _____ is a transaction in which one company buys another.

MATCHING Complete the following using the terms listed. -_____ are low-risk securities that either have short maturities or can easily be sold in secondary markets.

MATCHING Complete the following using the terms listed. -A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n) _____.

Describe hedge funds.

Financial plans that focus on projections no more than a year or two in the future are known as strategic plans.

In most firms, the controller is the chief accounting manager.

Why do firms divest assets?

Explain how the cash inflows and outflows of a business are similar to those of a household.

MATCHING Complete the following using the terms listed. -Certificates of indebtedness sold to raise long-term funds for a corporation or government agency are known as _____.

Kevin's company needs to obtain funds in order to keep the business going; however, she does not want stockholders influencing the direction of her company. What type of financing should Kevin acquire?

Grace is the financial manager for Branson Inc. and has decided to raise additional funds for the company by raising equity capital. She might do so by _____.

MATCHING Complete the following using the terms listed. -The process by which decisions are made regarding investments in long-lived assets is _____.

MATCHING Complete the following using the terms listed. -A(n) _____ is an executive who develops and implements a firm's financial plan and determines the most appropriate sources and uses of funds.

In the context of the role of the financial manager, who among the following reports directly to the chief financial officer?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Filters

Exam 17: Financial Management

The term used to describe the benefits produced by a merger or acquisition is _____.

Randy works in the financial division of his company and is responsible for preparing monetary forecasts and analyzing major investment decisions. What is Randy's title?

List the major sources of short-term and long-term funds.

A(n) _____ is a document that specifies the funds a firm will need for a period of time, the timing of inflows and outflows, and the most appropriate sources and uses of funds.

Virtually, all financial decisions involve a trade-off between risk and return.

A(n) _____ is a transaction in which one company buys another.

MATCHING Complete the following using the terms listed. -_____ are low-risk securities that either have short maturities or can easily be sold in secondary markets.

MATCHING Complete the following using the terms listed. -A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n) _____.

Describe hedge funds.

Financial plans that focus on projections no more than a year or two in the future are known as strategic plans.

In most firms, the controller is the chief accounting manager.

Why do firms divest assets?

Explain how the cash inflows and outflows of a business are similar to those of a household.

MATCHING Complete the following using the terms listed. -Certificates of indebtedness sold to raise long-term funds for a corporation or government agency are known as _____.

Kevin's company needs to obtain funds in order to keep the business going; however, she does not want stockholders influencing the direction of her company. What type of financing should Kevin acquire?

Grace is the financial manager for Branson Inc. and has decided to raise additional funds for the company by raising equity capital. She might do so by _____.

MATCHING Complete the following using the terms listed. -The process by which decisions are made regarding investments in long-lived assets is _____.

MATCHING Complete the following using the terms listed. -A(n) _____ is an executive who develops and implements a firm's financial plan and determines the most appropriate sources and uses of funds.

In the context of the role of the financial manager, who among the following reports directly to the chief financial officer?

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: the Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labor Relations

Top Performance Through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Filters