Exam 18: Finance Maximizing the Value

Payments in the form of more shares to existing shareholders are known as which of the following?

A term loan is a loan with a maturity of less than a year.

What is the major drawback to debt financing?

In finance,what is the opportunity for profit?

Long-term forecasts that cover two to ten years and take a broader view of the company's financial activities are known as which of the following?

When Magna Manufacturing sells hand screwdriver sets to Malloy Building Supply Company,Magna bills the tool manufacturer for the screwdriver purchase with terms of payment,which specify when the account is due.This type of unsecured loan is known as which of the following?

The major advantage of debt financing is which of the following?

Which of the following are forecasts of the company's inflows and outflows of cash?

Accounts receivable or inventory usually secures short-term secured loans.

The benefits from capital expenditures extend beyond one year's time.

In finance,the potential for loss is called probability.

What kind of budgeting would be used to make sure the company has enough money to purchase an additional warehouse when it achieves its growth goal?

Which of the following do financial managers use to describe the inflow and outflow of cash?

Short-term loans are best described by which of the following?

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

A loan that requires the borrower to pledge specific assets as collateral is known as which of the following?

Which of the following statements describes an advantage inherent in equity financing?

Which of the following is the process of identifying and evaluating risks and selecting and managing techniques to adapt to the risk exposure?

Financial management is the art and science of managing a company's money so the company can meet its goals.

Long-term forecasts are also called tactical plans.