Exam 17: Financial Management Appendix C Managing Risk

Financial managers examine the data prepared by accountants and make recommendations to top management regarding strategies for improving the financial well-being of the company.

A cash budget helps managers anticipate borrowing,debt repayment,operating expenses,and short-term investment opportunities.

________ examine the data prepared by______ and then make recommendations to top management regarding strategies for improving the firm.

Problems can occur in short-term loans from family and friends if the lender and the borrower do not understand what?

Sound financial management involves determining the most appropriate sources of funds to meet the short-term and long-term needs of an organization.

The main objective of financial control is to establish priorities for the purchase of plant and equipment.

The need for operating funds:

Firms can acquire funds through borrowing,selling ownership,or retaining earnings.

Creating a budget is the first step in a firm's financial planning and forecasting.

By borrowing $10 million from the First Newfoundland Bank,Cain Industries utilizes:

An unsecured loan does not require a borrower to provide collateral to secure a loan.

Financial managers devote the majority of their time obtaining long-term financing to fund the firm's capital expenditures.

As the owner of Kingdom's Treasures,Jerry negotiates with suppliers who hope to place their products in his high volume retail gift store.Jerry finances his inventory through the ________ credit offered by suppliers who delay payments for up to 60 days after the merchandise has been delivered to his business.

A promissory note that requires the borrower to repay the loan in specified installments is called a(n):

Sue is starting a personal wellness business.She is uncomfortable with making a loan application to a bank and decides to use her existing credit card for any short-term financial needs.Her dad suggests this is a bad idea because:

As John considers approaching a venture capital firm to provide funding for his new software firm,he should realize that a venture capital firm will:

Financial managers use data prepared by accountants to develop strategies for improving the financial strength of the firm.

Financing that must be repaid within one year represents:

A capital budget highlights a firm's spending plans of long-lasting assets,such as property,buildings,and equipment.

Everyone in business should study finance and accounting.