Question 1

How do financial managers keep current customers happy and attract new customers?

Accepted Answer

Financial managers know that m...

Question 2

is a source of long-term equity financing.

Accepted Answer

A)  Venture capital
B)  Commercial paper
C)  A bank loan
D)  Selling bondsE) None of the above
F) A) and B)

Question 3

A(n) ______is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles.

Accepted Answer

A)  managerial accountant
B)  internal auditor
C)  tax accountant
D)  bookkeeperE) C) and D)
F) B) and D)

Question 4

Production scheduling represents one of the responsibilities of financial managers.

Accepted Answer

A) True 
 B)False

Question 5

Much of a financial manager's day-to-day activities are involved in managing the short-term financial needs of the firm.

Accepted Answer

A) True 
 B)False

Question 6

The financial manager of a company is responsible for managing cash,budgets,accounts receivable,and managing taxes.

Accepted Answer

A) True 
 B)False

Question 7

A______ forecast predicts the future cash inflows and outflows.

Accepted Answer

A)  cash flow
B)  money based
C)  short-term
D)  long-termE) None of the above
F) A) and B)

Question 8

What is the major advantage for a business to use a term-loan agreement?

Accepted Answer

The major advantage is that th...

Question 9

Which of the following suggests that higher interest rates are charged to high risk borrowers?

Accepted Answer

A)  Risk/return tradeoff
B)  Compensating balance concept
C)  Cost-benefit analysis
D)  Direct relationship principleE) A) and B)
F) A) and C)

Question 10

In comparing the roles of accounting and finance:

Accepted Answer

A)  accounting gathers information,while finance interprets this information.
B)  finance gathers information,while accounting interprets this information.
C)  they are virtually the same,as the terms can be used interchangeably.
D)  they are very different from each other,and never would have the same boss.E) A) and B)
F) A) and C)

Question 11

Nicole is a financial manager.Her responsibilities include all of the following except preparing:

Accepted Answer

A)  for the expenditure of funds.
B)  financial statements.
C)  for the acquisition of funds.
D)  a cash flow analysis.E) A) and B)
F) B) and D)

Question 12

Clark,president of Cycles Go Go,worries that cash flows may be insufficient to pay his current operating expenses.While he anticipates a surplus of cash inflows as warm weather approaches,he needs to borrow funds now to meet his immediate obligations.Clark can best resolve his cash flow concerns by obtaining______ financing.

Accepted Answer

A)  contingency
B)  long-term
C)  intermediate
D)  short-termE) A) and D)
F) All of the above

Question 13

A debenture bond is backed only by the reputation of the issuer.

Accepted Answer

A) True 
 B)False

Question 14

What is equity capital? Identify and describe the major sources of this type of financing.

Accepted Answer

Equity capital represents money raised f...

Question 15

Which of the following represents a capital expenditure?

Accepted Answer

A)  Issuing paycheques to workers.
B)  Purchasing a building to be used for office space.
C)  Paying for advertising on a local radio station.
D)  Purchasing raw materials to be used in the production of a firm's product.E) A) and B)
F) None of the above

Question 16

Which of these statements about corporate bonds is correct?

Accepted Answer

A)  Interest paid to bondholders represents a tax deductible business expense.
B)  Bonds provide equity financing.
C)  Issuing new bonds dilutes the existing ownership in the firm.
D)  Debenture bonds require assets pledged as collateral.E) B) and D)
F) C) and D)

Question 17

The rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders is known as what?

Accepted Answer

A)  cost of capital
B)  preferred stock
C)  retained earnings.
D)  debentureE) B) and C)
F) B) and D)

Question 18

Venture capital firms look to invest their funds in firms that:

Accepted Answer

A)  require extra funding to avoid financial difficulties.
B)  are new with great profit potential.
C)  present financial statements indicating stronger than average cash flows.
D)  operate in established,mature industries.E) C) and D)
F) B) and D)

Question 19

A bond represents a long-term debt obligation of a corporation or government.

Accepted Answer

A) True 
 B)False

Question 20

With plans to build a $50 million theme park,Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm.Selling new shares of stock represents______ financing.

Accepted Answer

A)  equity
B)  debt
C)  initial offering
D)  retainedE) All of the above
F) A) and B)

Exam 17: Financial Management Appendix C Managing Risk

The financial manager of a company is responsible for managing cash,budgets,accounts receivable,and managing taxes.

Correct Answer
verified

Venture capital firms look to invest their funds in firms that:

Correct Answer
verified

Much of a financial manager's day-to-day activities are involved in managing the short-term financial needs of the firm.

Correct Answer
verified

With plans to build a $50 million theme park,Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm.Selling new shares of stock represents______ financing.

Correct Answer
verified

A debenture bond is backed only by the reputation of the issuer.

Correct Answer
verified

A bond represents a long-term debt obligation of a corporation or government.

Correct Answer
verified

What is the major advantage for a business to use a term-loan agreement?

Correct Answer
verified
The major advantage is that th...
View Answer

is a source of long-term equity financing.

Correct Answer
verified

Which of these statements about corporate bonds is correct?

Correct Answer
verified

A______ forecast predicts the future cash inflows and outflows.

Correct Answer
verified

Production scheduling represents one of the responsibilities of financial managers.

Correct Answer
verified

Nicole is a financial manager.Her responsibilities include all of the following except preparing:

Correct Answer
verified

A(n) ______is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles.

Correct Answer
verified

In comparing the roles of accounting and finance:

Correct Answer
verified

Which of the following suggests that higher interest rates are charged to high risk borrowers?

Correct Answer
verified

What is equity capital? Identify and describe the major sources of this type of financing.

Correct Answer
verified
Equity capital represents money raised f...
View Answer

Which of the following represents a capital expenditure?

Correct Answer
verified

The rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders is known as what?

Correct Answer
verified

Correct Answer
verified

How do financial managers keep current customers happy and attract new customers?

Correct Answer
verified
Financial managers know that m...
View Answer

Exam 17: Financial Management Appendix C Managing Risk

The financial manager of a company is responsible for managing cash,budgets,accounts receivable,and managing taxes.

Correct AnswerverifiedShow Answer

Venture capital firms look to invest their funds in firms that:

Correct AnswerverifiedShow Answer

Much of a financial manager's day-to-day activities are involved in managing the short-term financial needs of the firm.

Correct AnswerverifiedShow Answer

With plans to build a $50 million theme park,Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm.Selling new shares of stock represents______ financing.

Correct AnswerverifiedShow Answer

A debenture bond is backed only by the reputation of the issuer.

Correct AnswerverifiedShow Answer

A bond represents a long-term debt obligation of a corporation or government.

Correct AnswerverifiedShow Answer

What is the major advantage for a business to use a term-loan agreement?

Correct AnswerverifiedThe major advantage is that th...View AnswerShow Answer

is a source of long-term equity financing.

Correct AnswerverifiedShow Answer

Which of these statements about corporate bonds is correct?

Correct AnswerverifiedShow Answer

A______ forecast predicts the future cash inflows and outflows.

Correct AnswerverifiedShow Answer

Production scheduling represents one of the responsibilities of financial managers.

Correct AnswerverifiedShow Answer

Nicole is a financial manager.Her responsibilities include all of the following except preparing:

Correct AnswerverifiedShow Answer

A(n) ______is responsible for verifying that the accounting procedures within a firm are consistent with established accounting principles.

Correct AnswerverifiedShow Answer

In comparing the roles of accounting and finance:

Correct AnswerverifiedShow Answer

Which of the following suggests that higher interest rates are charged to high risk borrowers?

Correct AnswerverifiedShow Answer

What is equity capital? Identify and describe the major sources of this type of financing.

Correct AnswerverifiedEquity capital represents money raised f...View AnswerShow Answer

Which of the following represents a capital expenditure?

Correct AnswerverifiedShow Answer

The rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders is known as what?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

How do financial managers keep current customers happy and attract new customers?

Correct AnswerverifiedFinancial managers know that m...View AnswerShow Answer

Correct Answer
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The major advantage is that th...
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Correct Answer
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Correct Answer
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Equity capital represents money raised f...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
verified
Financial managers know that m...
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