Exam 13: Managing Financial Resources

Scenario-Based Privately held for 18 years, Superior Chemicals Inc.has finally decided to go public.The owners are in the process of deciding whether to use debt or equity financing to finance growth after the initial public offering. -If Superior sells stock, it will be opting for debt financing.

_____ review and recommend prospective investments to company managers.

In conducting open market operations, the Fed sells and purchases U.S.government bonds on the open market.

The best-known stock market is the American Stock Exchange.

If you are seeking a bank loan to start a small business, your banker will want to see a _____.

Jose is starting a Mexican restaurant.He plans to borrow money to buy a building to house the restaurant.Which of the following will Jose most likely use to finance the building?

What is the prime rate and how does it function?

About 10 years ago you founded an energy company that operates as a privately-held corporation with only limited stock ownership.You are considering selling stock to the public for the first time through an initial public offering.All of the following are disadvantages for taking a company public :

______ sell protection against losses incurred by illness, disability, death, and property damage.

The fact that people are willing to save money for future purposes describes which function of money _____.

A(n) _____ market deals in initial public offerings.

The rate that banks charge their best customers is called the maturity rate.

Credit unions offer only limited services to their members, who must be linked to a particular group such as employees of the State of North Carolina.

Angels are usually wealthy individuals willing to invest in start-up ventures that they believe will succeed.

If you're starting a new business and you borrow money from family members, you should be sure to _____.

Stockholders' equity is the amount invested in a business by its owners.

A market index is a written offer to sell securities that describes the business and operations of the issuer.

Because they don't accept deposits from individuals or provide traditional banking services, _____ are characterized as nondeposit institutions.

New businesses are generally financed by _____.

A market index is a measure for tracking stock prices.