Exam 17: Financial Management

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

All short-term bank loans are secured,meaning that the borrower pledges specific assets as collateral.

_____ would be the LEAST likely to obtain a private placement.

In a typical firm,the _____ is the chief accounting manager.

Which of these is a calculation that determines the difference in revenue of a retailer's existing supplies over a certain period of time,usually quarterly,compared to the identical period of time,in a prior year?

An automobile manufacturer,Diamond Securities Inc.offers to purchase 58% shares of a mid-sized start-up that deals with digital accessories for automobiles.However,Diamond Securities Inc.does not specify the price or the form of payment.According to the contract,the price of the purchase will be determined based on the market value of the share on the day of the purchase.This deal is an example of

The treasurer is the chief financial officer of most firms.

After coming up with the costs and expenses forecast,the CFO needs to estimate how many additional shifts the company will need to support projected sales.

Which of the following is TRUE of trade credit?

A good financial plan also includes financial control,a process of comparing actual revenues,costs,and expenses with forecasts.

The term used to describe the benefits produced by a merger or acquisition is

If a giant corporation puts up its under-performing or non-core brands for sale to other large corporations,then the former corporation is _____ companies that are not a part of the its core business.

Liquid Asset,Inc.(LAI)is a beverage company.Three years ago,LAI split its wine business into an entirely separate business called WineYard Treasure.Which of the following concepts does this scenario exemplify?

Which business function is responsible for planning,obtaining,and managing a company's funds to accomplish its objectives as effectively and efficiently as possible?

What is the final step in preparing a financial plan?

In a quarterly meeting,Antonio,a financial manager at InVest Inc.states that the company will benefit in the long term by utilizing a mix of debentures than focusing only on issuing shares.He states that this strategy will give his company a positive _____,which will increase the rate of return of the firm.

Which of these have a much longer time horizon,perhaps up to 5 or 10 years?

Debt is frequently the least costly method of raising additional financing dollars,one of the reasons it is so frequently used.

A(n)_____ is a transaction in which one company buys another.

Which of these are investment companies that raise funds from wealthy individuals and institutional investors and use the funds to make investments in both public and private companies?