Exam 18: Finance Maximizing the Value

Selling a company's accounts receivables to a financial institution at a discount is called countertrading.

Dividends and interest payment are both tax-deductible.

Commercial paper is best described by which of the following?

Which of the following are formal written forecasts of revenues and expenses that set spending limits based on operational forecasts?

A life insurance policy paid for by the business and naming the company as beneficiary if the employee dies is known as which of the following?

What is financial management?

The financial crisis of 2008 has had little effect on money management.

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.

A company's basic approach to paying dividends can greatly affect which of the following?

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 known as which of the following activities?

Which of the following is a long-term loan using real estate or other assets as collateral?

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

Which of the following groups would a secured Internet service provider be very likely to attract,given that it is in a high-tech industry with lots of opportunity for rapid growth?

C.W.Beauregard is an Atlantic salmon farmer.He produces and sells salmon to satisfy the growing demand for fish.He has arranged a business loan with terms that guarantee that he can borrow up to $12,000 whenever he needs it within the next year.He must pay interest only on the unpaid loan balance.Beauregard has arranged which type of credit?

Another term for the net profit of a company is retained earnings.

Shameika Olson owns a bookstore and has arranged a business loan with the bank where she has her business account.The terms of the loan allow her to borrow up to $12,000 within the next year.She must pay interest only on the unpaid loan balance.Olson has arranged which of the following?

Sales made,but for which payment has not yet been collected,are called accounts payable.

Short-term expenses used to support current production and selling expenses are known as which of the following?

What are short-term investments that are easily converted back to cash and are used by financial managers to achieve higher returns than those offered by chequing accounts?

Lowell Arden bought and sold shares for a profit.The profit Arden earned on his investment in shares is known as which of the following?