Question 1

Complete the following using the terms listed below.
-______ is the amount of assets needed to generate a given level of sales.

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 2

The CFO of XYZ Company uses forecast of sales and long-term projection of expenses to determine the expected level of ______ for future periods.

Accepted Answer

A)  profits 
B)  funds 
C)  purchases 
D)  taxes 
A)  profits 
B)  funds 
C)  purchases 
D)  taxes

Question 3

Briefly explain the role of financial managers in an organization.

Accepted Answer

Financial managers are the executives wh

Question 4

All of the following actions result in equity capital EXCEPT ______.

Accepted Answer

A)  issuing bonds 
B)  liquidating assets 
C)  issuing stock 
D)  reinvesting earnings 
A)  issuing bonds 
B)  liquidating assets 
C)  issuing stock 
D)  reinvesting earnings

Question 5

Explain the purposes of a financial plan.

Accepted Answer

A financial plan outlines the funds requ

Question 6

A company's financial plan should answer all of the following questions EXCEPT ______.

Accepted Answer

A)  what is the contingency plan in case of bankruptcy? 
B)  what funds will the firm require during the appropriate period of operations? 
C)  how will it obtain the necessary money? 
D)  when will it need more cash? 
A)  what is the contingency plan in case of bankruptcy? 
B)  what funds will the firm require during the appropriate period of operations? 
C)  how will it obtain the necessary money? 
D)  when will it need more cash?

Question 7

A firm's investment opportunity is a major factor when deciding its dividend policy.

Accepted Answer

A) True 
 B)False

Question 8

Complete the following using the terms listed below.
-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)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 9

A ______ is an executive who develops and carries out a firm's financial plan and decides on the most appropriate sources and uses of funds.

Accepted Answer

A)  Controller 
B)  Chief Financial Officer 
C)  Vice President of Financial Planning 
D)  Treasurer 
A)  Controller 
B)  Chief Financial Officer 
C)  Vice President of Financial Planning 
D)  Treasurer

Question 10

What is the purpose of a financial plan?

Accepted Answer

A financial plan is a document that spec

Question 11

Explain the difference between long-term and short-term funds used by a company for its operations.

Accepted Answer

Short-term funds consist of current liab

Question 12

A treasurer is usually responsible for preparing financial forecasts and analyzing major investment decisions related to new products, new production facilities, and acquisitions.

Accepted Answer

A) True 
 B)False

Question 13

The sovereign wealth fund is a variation of ______.

Accepted Answer

A)  the private equity fund 
B)  debt capital 
C)  market securities 
D)  private placements 
A)  the private equity fund 
B)  debt capital 
C)  market securities 
D)  private placements

Question 14

Mention and explain three sources of short-term funding.

Accepted Answer

Three sources of short-term funding are

Question 15

Short-term funds are generally more expensive than long-term funds and generally expose the firm to more risk.

Accepted Answer

A) True 
 B)False

Question 16

Most firms invest their excess cash in marketable securities which is defined as high-risk securities that either have short-term maturities or can be easily sold in the secondary market.

Accepted Answer

A) True 
 B)False

Question 17

What is an LBO?

Accepted Answer

LBO-leveraged buyout-is a transaction wh

Question 18

The exercise of employee stock options is a source of equity capital for a business.

Accepted Answer

A) True 
 B)False

Question 19

Complete the following using the terms listed below.
-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)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 20

Complete the following using the terms listed below.
-______ consists of funds provided by the firm's owners when they reinvest earnings, make additional contributions, liquidate assets, issue stock, or raise capital.

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

Complete the following using the terms listed below. -______ is the amount of assets needed to generate a given level of sales.

The CFO of XYZ Company uses forecast of sales and long-term projection of expenses to determine the expected level of ______ for future periods.

Briefly explain the role of financial managers in an organization.

All of the following actions result in equity capital EXCEPT ______.

Explain the purposes of a financial plan.

A company's financial plan should answer all of the following questions EXCEPT ______.

A firm's investment opportunity is a major factor when deciding its dividend policy.

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

A ______ is an executive who develops and carries out a firm's financial plan and decides on the most appropriate sources and uses of funds.

What is the purpose of a financial plan?

Explain the difference between long-term and short-term funds used by a company for its operations.

A treasurer is usually responsible for preparing financial forecasts and analyzing major investment decisions related to new products, new production facilities, and acquisitions.

The sovereign wealth fund is a variation of ______.

Mention and explain three sources of short-term funding.

Short-term funds are generally more expensive than long-term funds and generally expose the firm to more risk.

Most firms invest their excess cash in marketable securities which is defined as high-risk securities that either have short-term maturities or can be easily sold in the secondary market.

What is an LBO?

The exercise of employee stock options is a source of equity capital for a business.

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

Complete the following using the terms listed below. -______ consists of funds provided by the firm's owners when they reinvest earnings, make additional contributions, liquidate assets, issue stock, or raise capital.

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

Complete the following using the terms listed below. -______ is the amount of assets needed to generate a given level of sales.

The CFO of XYZ Company uses forecast of sales and long-term projection of expenses to determine the expected level of ______ for future periods.

Briefly explain the role of financial managers in an organization.

All of the following actions result in equity capital EXCEPT ______.

Explain the purposes of a financial plan.

A company's financial plan should answer all of the following questions EXCEPT ______.

A firm's investment opportunity is a major factor when deciding its dividend policy.

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

A ______ is an executive who develops and carries out a firm's financial plan and decides on the most appropriate sources and uses of funds.

What is the purpose of a financial plan?

Explain the difference between long-term and short-term funds used by a company for its operations.

A treasurer is usually responsible for preparing financial forecasts and analyzing major investment decisions related to new products, new production facilities, and acquisitions.

The sovereign wealth fund is a variation of ______.

Mention and explain three sources of short-term funding.

Short-term funds are generally more expensive than long-term funds and generally expose the firm to more risk.

Most firms invest their excess cash in marketable securities which is defined as high-risk securities that either have short-term maturities or can be easily sold in the secondary market.

What is an LBO?

The exercise of employee stock options is a source of equity capital for a business.

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

Complete the following using the terms listed below. -______ consists of funds provided by the firm's owners when they reinvest earnings, make additional contributions, liquidate assets, issue stock, or raise capital.

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