Exam 18: Finance Maximizing the Value

Earth Worm is an independent bookstore that only eight months after opening went bankrupt due to an unexpected demand for cash to fix a leaking roof.Which of the following activities might have allowed the business to continue operation?

Term loans are best described by which of the following?

Which of the following terms represents the stated interest rate of a bond?

What are three important forms of long-term debt?

Speculative risk cannot be insured.

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?

Financial managers constantly strive for a balance between which of the following?

Chez Dove is an independent coffeehouse/bookstore.In order to predict how much coffee it would serve,how many Styrofoam cups it would need,and how much staff it will require during July,the company would use which type of budget?

Esselte is one of the world's leading producers of office supplies.The company forecasts that its profits will double by the year 2012,and its financial manager will need to determine what should be done with the increased earnings.This forecast is part of which of the following activities?

Today,an organization's chief financial officer is expected to take the central role in establishing public trust.

Short-term forecasts that project revenues,costs of goods,and operating expenses over a one-year period are known as which of the following?

An IOU is most similar to which type of bank loan?

What is a financial manager doing when he or she sets credit terms and decides on collection policies?

List three forms of long-term debt that are available to companies.

Which of the following is a company-wide,strategic approach to identifying,monitoring,and managing a company's risk?

Operating budgets forecast outlays for fixed assets such as plant and equipment.

In seeking a balance between the opportunity for profit and the potential for loss,a financial manager is dealing with which of the following concepts?

Briefly define the risk-return trade-off.

Long-term debts (liabilities)for corporations and governments are known as which of the following?

Which of the following is a short-term unsecured debt issued by a financially strong corporation?