Question 1

Leverage ________ the return to shareholders and ________ the risk of their investment.

Accepted Answer

A)  lowers;lowers 
B)  lowers;increases 
C)  increases;lowers 
D)  increases;increases 
A)  lowers;lowers 
B)  lowers;increases 
C)  increases;lowers 
D)  increases;increases D

Question 2

If a firm has numerous investment opportunities and wishes to finance some of them with equity funding,it will likely pay large dividends to shareholders.

Accepted Answer

A) True 
 B)False  False

Question 3

A(n)________ is a document that specifies the funds a firm will need for a period of time,the timing of inflows and outflows,and the most appropriate sources and uses of funds.

Accepted Answer

A)  asset management plan 
B)  budget 
C)  strategic plan 
D)  financial plan 
A)  asset management plan 
B)  budget 
C)  strategic plan 
D)  financial plan D

Question 4

Financial managers are responsible for increasing profits to shareholders.

Accepted Answer

A) True 
 B)False

Question 5

A(n)________ is the reverse of a merger.

Accepted Answer

A)  LBO 
B)  divestiture 
C)  acquisition 
D)  tender offer 
A)  LBO 
B)  divestiture 
C)  acquisition 
D)  tender offer

Question 6

When a firm receives goods or services from a supplier and agrees to pay for them at a later date,this arrangement is called ________.

Accepted Answer

A)  a short-term loan 
B)  a repurchase agreement 
C)  trade credit 
D)  commercial credit 
A)  a short-term loan 
B)  a repurchase agreement 
C)  trade credit 
D)  commercial credit

Question 7

_____ raise money from wealthy individuals and institutional investors,and invest these funds in small,start-up companies.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds 
A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds

Question 8

Why is commercial paper an attractive short-term financing option?

Accepted Answer

Commercial paper is an attractive financ

Question 9

Virtually all financial decisions involve a trade-off between risk and return.

Accepted Answer

A) True 
 B)False

Question 10

Central Valley Pharmaceuticals needs to raise funds to buy new production equipment.The financial manager would probably suggest that his company raise debt capital by ________.

Accepted Answer

A)  using accumulated earnings 
B)  selling stock 
C)  selling marketable securities 
D)  borrowing money from a bank 
A)  using accumulated earnings 
B)  selling stock 
C)  selling marketable securities 
D)  borrowing money from a bank

Question 11

The treasurer is the chief financial officer of most firms.

Accepted Answer

A) True 
 B)False

Question 12

Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales.According to asset intensity,for every $100 increase in sales,the firm would need about $68 of additional assets.

Accepted Answer

A) True 
 B)False

Question 13

What is the purpose of a financial plan?

Accepted Answer

A financial plan is a document that spec

Question 14

Public sales can vary substantially from year to year depending on the conditions in the financial markets.

Accepted Answer

A) True 
 B)False

Question 15

Jasmine works in the financial division of her company and is responsible for preparing monetary forecasts and analyzing major investment decisions.What is Jasmine's title?

Accepted Answer

A)  Treasurer 
B)  CFO 
C)  Vice President for Financial Management 
D)  Controller 
A)  Treasurer 
B)  CFO 
C)  Vice President for Financial Management 
D)  Controller

Question 16

Risk is defined as the uncertainty of a profit or a loss.

Accepted Answer

A) True 
 B)False

Question 17

_____ is extended by suppliers when a firm receives goods or services,agreeing to pay them at a later date.

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds 
A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds

Question 18

Financial plans that focus on projections no more than a year or two in the future are known as strategic plans.

Accepted Answer

A) True 
 B)False

Question 19

Selling receivables to another party for cash is _____

Accepted Answer

A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds 
A) venture capitalists 
B) private placements 
C) factoring 
D) capital investment analysis 
E) debt capital
F)equity capital
G)financial plan
H)leverage buyout
I)private equity funds
J)divesture
K)marketable securities
L)financial manager
M)tender offer
N)trade credit
O)leverage
P)capital structure
Q)asset intensity
R)bonds

Question 20

Acquisitions are the opposite of mergers,in which companies sell assets such as subsidiaries,product lines,or production facilities.

Accepted Answer

A) True 
 B)False

Leverage the return to shareholders and the risk of their investment.

If a firm has numerous investment opportunities and wishes to finance some of them with equity funding,it will likely pay large dividends to shareholders.

A(n)________ is a document that specifies the funds a firm will need for a period of time,the timing of inflows and outflows,and the most appropriate sources and uses of funds.

Financial managers are responsible for increasing profits to shareholders.

A(n)________ is the reverse of a merger.

When a firm receives goods or services from a supplier and agrees to pay for them at a later date,this arrangement is called ________.

_____ raise money from wealthy individuals and institutional investors,and invest these funds in small,start-up companies.

Why is commercial paper an attractive short-term financing option?

Virtually all financial decisions involve a trade-off between risk and return.

Central Valley Pharmaceuticals needs to raise funds to buy new production equipment.The financial manager would probably suggest that his company raise debt capital by ________.

The treasurer is the chief financial officer of most firms.

Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales.According to asset intensity,for every $100 increase in sales,the firm would need about $68 of additional assets.

What is the purpose of a financial plan?

Public sales can vary substantially from year to year depending on the conditions in the financial markets.

Jasmine works in the financial division of her company and is responsible for preparing monetary forecasts and analyzing major investment decisions.What is Jasmine's title?

Risk is defined as the uncertainty of a profit or a loss.

_____ is extended by suppliers when a firm receives goods or services,agreeing to pay them at a later date.

Financial plans that focus on projections no more than a year or two in the future are known as strategic plans.

Selling receivables to another party for cash is _____

Acquisitions are the opposite of mergers,in which companies sell assets such as subsidiaries,product lines,or production facilities.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Filters

Exam 17: Financial Management

Leverage ________ the return to shareholders and ________ the risk of their investment.

If a firm has numerous investment opportunities and wishes to finance some of them with equity funding,it will likely pay large dividends to shareholders.

A(n)________ is a document that specifies the funds a firm will need for a period of time,the timing of inflows and outflows,and the most appropriate sources and uses of funds.

Financial managers are responsible for increasing profits to shareholders.

A(n)________ is the reverse of a merger.

When a firm receives goods or services from a supplier and agrees to pay for them at a later date,this arrangement is called ________.

_____ raise money from wealthy individuals and institutional investors,and invest these funds in small,start-up companies.

Why is commercial paper an attractive short-term financing option?

Virtually all financial decisions involve a trade-off between risk and return.

Central Valley Pharmaceuticals needs to raise funds to buy new production equipment.The financial manager would probably suggest that his company raise debt capital by ________.

The treasurer is the chief financial officer of most firms.

Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales.According to asset intensity,for every $100 increase in sales,the firm would need about $68 of additional assets.

What is the purpose of a financial plan?

Public sales can vary substantially from year to year depending on the conditions in the financial markets.

Jasmine works in the financial division of her company and is responsible for preparing monetary forecasts and analyzing major investment decisions.What is Jasmine's title?

Risk is defined as the uncertainty of a profit or a loss.

_____ is extended by suppliers when a firm receives goods or services,agreeing to pay them at a later date.

Financial plans that focus on projections no more than a year or two in the future are known as strategic plans.

Selling receivables to another party for cash is _____

Acquisitions are the opposite of mergers,in which companies sell assets such as subsidiaries,product lines,or production facilities.

The Changing Face of Business

Business Ethics and Social Responsibility

Economic Challenges Facing Contemporary Business

Competing in World Markets

Forms of Business Ownership and Organization

Starting Your Own Business: The Entrepreneurship Alternative

Management, Leadership, and the Internal Organization

Human Resource Management: From Recruitment to Labour Relations

Top Performance through Empowerment, Teamwork, and Communication

Production and Operations Management

Customer-Driven Marketing

Product and Distribution Strategies

Promotion and Pricing Strategies

Using Technology to Manage Information

Understanding Accounting and Financial Statements

The Financial System

Filters

Leverage the return to shareholders and the risk of their investment.