FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Financial Management

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 91

True/False

Review LaterAdd Note

Review Later

The long-term financial forecast gives top management some sense of the profit potential of various strategic decisions.

A) True
B) False

Correct Answer

verified

Show Answer

Question 92

True/False

Review LaterAdd Note

Review Later

A firm's most recent financial statements often serve as the basis for predicting future sales, costs, and expenses.

A) True
B) False

Correct Answer

verified

Show Answer

Question 93

True/False

Review LaterAdd Note

Commercial paper is unsecured short-term debt.

Finance is the function in a business that acquires funds for the firm and manages those funds within the firm.

Equity financing may involve the sale of stock (representing ownership) to new investors.

A comptroller is responsible for the acquiring and managing of funds for an organization.

The indenture terms refer to the agreements of a bond issue, such as how much interest it promises to pay and when it promises to repay the issue.

Financial managers generally oppose credit sales because of the impact on cash flows.

________ refers to the strategy of using borrowed funds to increase the rate of return for stockholders.

Venture capital firms look to invest their funds in firms that

Based on the time value of money, $100 received a year from today is worth more than $100 received today.

A promissory note is a written contract between a supplier and a business customer, with a promise that customer will pay supplier a specified amount by a certain date.

A loan backed by collateral represents a(n)

The terms "2/10, net 30" indicate that the seller is offering a 20% discount for early payment.

Which of these is backed only by the reputation of the issuer?

To reduce the time and expense of collecting their accounts receivable, some firms

Bigbux Savings and Loan agreed to extend Appleman's Orchards $250,000 of unsecured short-term funds, contingent upon the bank having the funds available. This arrangement represents a

Seedling Plant Science invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs serious funding. The handful of seed scientists that own the company are seeking ________, but understand that they will relinquish a sizeable share of ownership in order to obtain the funds.

To improve cash flow and profitability, effective managers attempt to minimize the firm's investment in inventory.

One important consideration for a firm accepting funds from a venture capitalist is the ownership interest demanded by the venture capital firm.