Question 1

The major purpose of cash is to pay day-to-day expenses.

Accepted Answer

A) True 
 B)False

Question 2

Complete the following using the terms listed below.
-The technique of increasing the rate of return on an investment by financing it with borrowed funds is called ______.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage 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)leverage 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 3

Firms often rely on short-term sources of funds to pay for large, permanent assets, such as machinery and buildings.

Accepted Answer

A) True 
 B)False

Question 4

Complete the following using the terms listed below.
-______ 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)leverage 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)leverage 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 5

If a firm has numerous investment opportunities and wishes to finance some of them with equity funding, it will likely pay large dividends to shareholders.

Accepted Answer

A) True 
 B)False

Question 6

The financial manager for a typical corporation is responsible for ______.

Accepted Answer

A)  designing the accounting system 
B)  determining the most appropriate sources and uses of funds 
C)  gathering, recording, and reporting financial information 
D)  preparing operating budgets for various departments 
A)  designing the accounting system 
B)  determining the most appropriate sources and uses of funds 
C)  gathering, recording, and reporting financial information 
D)  preparing operating budgets for various departments

Question 7

Target's Canadian operations failed because ______.

Accepted Answer

A)  the company did not conduct any market research before entering the Canadian market 
B)  the company had too many employees in the Canadian stores 
C)  the company did not meet the profit levels expected/estimated before the operations began 
D)  the company Canadian president was not experienced enough 
A)  the company did not conduct any market research before entering the Canadian market 
B)  the company had too many employees in the Canadian stores 
C)  the company did not meet the profit levels expected/estimated before the operations began 
D)  the company Canadian president was not experienced enough

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Complete the following using the terms listed below.
-______ raise money from wealthy individuals and institutional investors, and invest these funds in small startup companies.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage 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)leverage 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 10

Financial managers are responsible for increasing profits to shareholders.

Accepted Answer

A) True 
 B)False

Question 11

Hedge funds are private investment companies open only to qualified large investors.

Accepted Answer

A) True 
 B)False

Question 12

Complete the following using the terms listed below.
-An offer made by an outside investor or firm to the target firm's shareholders is a ______.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage 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)leverage 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 13

Leverage ______ the return to shareholders and ______ the risk of their investment.

Accepted Answer

A)  lowers; lowers 
B)  lowers; increases 
C)  increases; lowers 
D)  increases; increases 
A)  lowers; lowers 
B)  lowers; increases 
C)  increases; lowers 
D)  increases; increases

Question 14

Two types of divestitures are ______.

Accepted Answer

A)  selloffs and trade-offs 
B)  trade-offs and spinoffs 
C)  buy-offs and spinoffs 
D)  selloffs and spinoffs 
A)  selloffs and trade-offs 
B)  trade-offs and spinoffs 
C)  buy-offs and spinoffs 
D)  selloffs and spinoffs

Question 15

There are two types of divestitures: selloffs and spinoffs. For selloffs, a new firm is created from the assets divested.

Accepted Answer

A) True 
 B)False

Question 16

Complete the following using the terms listed below.
-______ is extended by suppliers when a firm receives goods or services, agreeing to pay them at a later date.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage 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)leverage 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 17

There are two types of divestitures: selloffs and spinoffs. For spinoffs, assets are sold by one firm to another firm.

Accepted Answer

A) True 
 B)False

Question 18

Unlike private equity funds, which tend to focus on small, startup companies, venture capital funds invest in all types of businesses, including mature ones.

Accepted Answer

A) True 
 B)False

Question 19

In many companies, a CEO is promoted to the position of CFO.

Accepted Answer

A) True 
 B)False

Question 20

When a firm receives goods or services from a supplier and agrees to pay for them at a later date, this arrangement is called ______.

Accepted Answer

A)  a short-term loan 
B)  a repurchase agreement 
C)  trade credit 
D)  commercial credit 
A)  a short-term loan 
B)  a repurchase agreement 
C)  trade credit 
D)  commercial credit

The major purpose of cash is to pay day-to-day expenses.

Complete the following using the terms listed below. -The technique of increasing the rate of return on an investment by financing it with borrowed funds is called ______.

Firms often rely on short-term sources of funds to pay for large, permanent assets, such as machinery and buildings.

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

If a firm has numerous investment opportunities and wishes to finance some of them with equity funding, it will likely pay large dividends to shareholders.

The financial manager for a typical corporation is responsible for ______.

Target's Canadian operations failed because ______.

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

Complete the following using the terms listed below. -______ raise money from wealthy individuals and institutional investors, and invest these funds in small startup companies.

Financial managers are responsible for increasing profits to shareholders.

Hedge funds are private investment companies open only to qualified large investors.

Complete the following using the terms listed below. -An offer made by an outside investor or firm to the target firm's shareholders is a ______.

Leverage the return to shareholders and the risk of their investment.

Two types of divestitures are ______.

There are two types of divestitures: selloffs and spinoffs. For selloffs, a new firm is created from the assets divested.

Complete the following using the terms listed below. -______ is extended by suppliers when a firm receives goods or services, agreeing to pay them at a later date.

There are two types of divestitures: selloffs and spinoffs. For spinoffs, assets are sold by one firm to another firm.

Unlike private equity funds, which tend to focus on small, startup companies, venture capital funds invest in all types of businesses, including mature ones.

In many companies, a CEO is promoted to the position of CFO.

When a firm receives goods or services from a supplier and agrees to pay for them at a later date, this arrangement is called ______.

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 Labour 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 major purpose of cash is to pay day-to-day expenses.

Complete the following using the terms listed below. -The technique of increasing the rate of return on an investment by financing it with borrowed funds is called ______.

Firms often rely on short-term sources of funds to pay for large, permanent assets, such as machinery and buildings.

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

If a firm has numerous investment opportunities and wishes to finance some of them with equity funding, it will likely pay large dividends to shareholders.

The financial manager for a typical corporation is responsible for ______.

Target's Canadian operations failed because ______.

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

Complete the following using the terms listed below. -______ raise money from wealthy individuals and institutional investors, and invest these funds in small startup companies.

Financial managers are responsible for increasing profits to shareholders.

Hedge funds are private investment companies open only to qualified large investors.

Complete the following using the terms listed below. -An offer made by an outside investor or firm to the target firm's shareholders is a ______.

Leverage ______ the return to shareholders and ______ the risk of their investment.

Two types of divestitures are ______.

There are two types of divestitures: selloffs and spinoffs. For selloffs, a new firm is created from the assets divested.

Complete the following using the terms listed below. -______ is extended by suppliers when a firm receives goods or services, agreeing to pay them at a later date.

There are two types of divestitures: selloffs and spinoffs. For spinoffs, assets are sold by one firm to another firm.

Unlike private equity funds, which tend to focus on small, startup companies, venture capital funds invest in all types of businesses, including mature ones.

In many companies, a CEO is promoted to the position of CFO.

When a firm receives goods or services from a supplier and agrees to pay for them at a later date, this arrangement is called ______.

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 Labour 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

Leverage the return to shareholders and the risk of their investment.