Exam 17: Financial Management

What is factoring and why is it regarded as a short-term financing option?

A financial plan is a document that ______.

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

Corporate debt securities are the most common type of security sold privately.

Managing assets for an international company reduces challenges faced by a financial manager.

Kaitlyn'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 Kaitlyn acquire?

Private placements are subject to fewer government regulations because registration with Canadian Securities Administration is NOT required for selling securities privately.

The gain or loss that results from an investment over a specified period of time is known as ______.

Grace is the financial manager for Manitoba Fabrication and has decided to raise additional funds for the company by raising equity capital. She might do so by ______.

Private equity funds raise funds from wealthy individuals and institutional investors and invest the funds in ______.

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.

Short-term assets are expected to be converted into cash within ______.

______ are investment companies that raise funds from wealthy individuals and institutional investors and use the funds to make investments in both public and private companies.

Elaborate on the steps involved in preparing a financial plan.

Upgrading assets by substituting new assets for older ones is an example of an investment decision.

Major current assets include all of the following EXCEPT ______.

Identify the major sources of equity capital.

Whenever a company borrows money, it creates leverage.

Leverage increases the potential return to a firm's shareholders, but also reduces the risk of their investment because shareholders have contributed less capital.

Marketable securities are ______.