Question 1

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

Accepted Answer

A) Credit credentials 
B) Credit terms 
C) Revolving accounts 
D) Liability procedures 
E) Sales terms 
A) Credit credentials 
B) Credit terms 
C) Revolving accounts 
D) Liability procedures 
E) Sales terms B

Question 2

The three main types of unsecured short-term loans are:

Accepted Answer

A) treasury bills, certificates of deposit, and accounts payable 
B) accounts payable, notes payable, and loans payable 
C) trade credit, accounts payable, and bank loans 
D) trade credit, bank loans, and commercial paper 
E) commercial paper, accounts payable, and trade credit 
A) treasury bills, certificates of deposit, and accounts payable 
B) accounts payable, notes payable, and loans payable 
C) trade credit, accounts payable, and bank loans 
D) trade credit, bank loans, and commercial paper 
E) commercial paper, accounts payable, and trade credit D

Question 3

What is most commonly used for collateral with secured loans?

Accepted Answer

accounts receivable and inventory

Question 4

What is the oldest and most prestigious of the U.S.stock exchanges?

Accepted Answer

the New Yo

Question 5

Blackwell Investments specializes in acting as an intermediary in taking companies public.This financial middleman is an example of a(n):

Accepted Answer

A) stockbroker 
B) investment banker 
C) transfer agent 
D) commercial banker 
E) public distributor 
A) stockbroker 
B) investment banker 
C) transfer agent 
D) commercial banker 
E) public distributor

Question 6

In which of the following industries are you most likely to find factoring being used?

Accepted Answer

A) fast-food industry 
B) appliance industry 
C) tire industry 
D) soft drink industry 
E) entertainment industry 
A) fast-food industry 
B) appliance industry 
C) tire industry 
D) soft drink industry 
E) entertainment industry

Question 7

The primary activity of _____ is underwriting.

Accepted Answer

A) Securities and Exchange Commission (SE
C)  
B) the New York Stock Exchange 
C) The Wall Street Journal 
D) stockbrokers 
E) investment bankers 
A) Securities and Exchange Commission (SE
C)  
B) the New York Stock Exchange 
C) The Wall Street Journal 
D) stockbrokers 
E) investment bankers

Question 8

In finance, the opportunity for a profit is called return.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement?

Accepted Answer

A) a manufacturer of integrated circuits 
B) a Christmas tree farm 
C) a poultry producer 
D) an envelope manufacturer 
E) a manufacturer of health and beauty aids 
A) a manufacturer of integrated circuits 
B) a Christmas tree farm 
C) a poultry producer 
D) an envelope manufacturer 
E) a manufacturer of health and beauty aids

Question 10

_____ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent.

Accepted Answer

A) Intrapreneurs 
B) Multipreneurs 
C) Venture capitalists 
D) Leveraged capitalists 
E) Business opportunists 
A) Intrapreneurs 
B) Multipreneurs 
C) Venture capitalists 
D) Leveraged capitalists 
E) Business opportunists

Question 11

In finance, the potential for loss is called probability.

Accepted Answer

A) True 
 B)False

Question 12

Investment banker is another term for stockbroker.

Accepted Answer

A) True 
 B)False

Question 13

A secured loan requires the borrower to pledge specific assets as _____ or security.

Accepted Answer

The answer of A secured loan requires the borrower to...

Question 14

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount.This sale is called:

Accepted Answer

A) bartering 
B) collateralizing 
C) factoring 
D) countertrading 
E) buying on the short 
A) bartering 
B) collateralizing 
C) factoring 
D) countertrading 
E) buying on the short

Question 15

Which statement describes the major drawback to the use of debt financing?

Accepted Answer

A) The interest paid is not tax-deductible. 
B) Debt financing is a form of permanent financing. 
C) Debt financing gives common stockholders a voice in company management. 
D) Financial risk is always a possibility with debt financing. 
E) Dividends are paid from after-tax income. 
A) The interest paid is not tax-deductible. 
B) Debt financing is a form of permanent financing. 
C) Debt financing gives common stockholders a voice in company management. 
D) Financial risk is always a possibility with debt financing. 
E) Dividends are paid from after-tax income.

Question 16

The major advantage of debt financing is the:

Accepted Answer

A) number of different sources from which it is available 
B) lack of dependence on collateral 
C) absence of factoring 
D) deductibility of interest expenses 
E) amortization benefits 
A) number of different sources from which it is available 
B) lack of dependence on collateral 
C) absence of factoring 
D) deductibility of interest expenses 
E) amortization benefits

Question 17

What are the three main types of unsecured short-term loans?

Accepted Answer

trade cred

Question 18

Secured short-term loans are usually secured by:

Accepted Answer

A) accounts payable and accounts receivable 
B) buildings and equipment 
C) equipment and inventory 
D) inventory and raw material 
E) accounts receivable and inventory 
A) accounts payable and accounts receivable 
B) buildings and equipment 
C) equipment and inventory 
D) inventory and raw material 
E) accounts receivable and inventory

Question 19

Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.

Accepted Answer

A) True 
 B)False

Question 20

Of all the forms of equity capital, venture capital is the easiest to obtain.

Accepted Answer

A) True 
 B)False

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

The three main types of unsecured short-term loans are:

What is most commonly used for collateral with secured loans?

What is the oldest and most prestigious of the U.S.stock exchanges?

Blackwell Investments specializes in acting as an intermediary in taking companies public.This financial middleman is an example of a(n):

In which of the following industries are you most likely to find factoring being used?

The primary activity of _____ is underwriting.

In finance, the opportunity for a profit is called return.

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement?

_____ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent.

In finance, the potential for loss is called probability.

Investment banker is another term for stockbroker.

A secured loan requires the borrower to pledge specific assets as _____ or security.

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount.This sale is called:

Which statement describes the major drawback to the use of debt financing?

The major advantage of debt financing is the:

What are the three main types of unsecured short-term loans?

Secured short-term loans are usually secured by:

Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.

Of all the forms of equity capital, venture capital is the easiest to obtain.

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Forms of Business Ownership

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Your Career in Business

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Exam 16: Understanding Financial Management and Securities Markets

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

The three main types of unsecured short-term loans are:

What is most commonly used for collateral with secured loans?

What is the oldest and most prestigious of the U.S.stock exchanges?

Blackwell Investments specializes in acting as an intermediary in taking companies public.This financial middleman is an example of a(n):

In which of the following industries are you most likely to find factoring being used?

The primary activity of _____ is underwriting.

In finance, the opportunity for a profit is called return.

Which of the following businesses would be most likely to require an unsecured bank loan, such as a line of credit or a revolving credit agreement?

_____ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent.

In finance, the potential for loss is called probability.

Investment banker is another term for stockbroker.

A secured loan requires the borrower to pledge specific assets as _____ or security.

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount.This sale is called:

Which statement describes the major drawback to the use of debt financing?

The major advantage of debt financing is the:

What are the three main types of unsecured short-term loans?

Secured short-term loans are usually secured by:

Venture capitalists provide a source of debt financing and usually charge high interest for loans because of the high risk of the enterprises they finance.

Of all the forms of equity capital, venture capital is the easiest to obtain.

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Forms of Business Ownership

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Your Career in Business

Filters