Question 1

The three basic types of long-term financing are debt, equity, and hybrid financing.

Accepted Answer

A) True 
 B)False  True

Question 2

The "measuring stick" against which performance is evaluated is provided by

Accepted Answer

A)  a budget. 
B)  a cash flow statement. 
C)  a financial plan. 
D)  a balance sheet. 
E)  debt levels. 
A)  a budget. 
B)  a cash flow statement. 
C)  a financial plan. 
D)  a balance sheet. 
E)  debt levels. A

Question 3

Henry has received notice from a supplier that all invoices must be paid within 30 days rather than 60 days as previously given. Which of the following will be impacted by this change?

Accepted Answer

A)  Inventories 
B)  Raw materials inventory 
C)  Accounts receivable 
D)  Capital expenditures 
E)  Cash flow 
A)  Inventories 
B)  Raw materials inventory 
C)  Accounts receivable 
D)  Capital expenditures 
E)  Cash flow E

Question 4

When an investment bank underwrites a new security, they are

Accepted Answer

A)  assessing the risk of that new security. 
B)  privately supporting the issuing organization. 
C)  buying the new security. 
D)  co-signing the bonds. 
E)  attesting to the good investment potential of a new security. 
A)  assessing the risk of that new security. 
B)  privately supporting the issuing organization. 
C)  buying the new security. 
D)  co-signing the bonds. 
E)  attesting to the good investment potential of a new security.

Question 5

Commercial paper is generally issued by companies that have trouble getting regular bank loans.

Accepted Answer

A) True 
 B)False

Question 6

The ________ is the percentage of the total sales price that a buyer must put up to place an order for a stock or a futures contract.

Accepted Answer

A)  installment 
B)  up-front money 
C)  purchase money 
D)  down payment 
E)  margin 
A)  installment 
B)  up-front money 
C)  purchase money 
D)  down payment 
E)  margin

Question 7

A business firm may elect to provide for long-term funding needs by retaining earnings instead of paying dividends to the shareholders.

Accepted Answer

A) True 
 B)False

Question 8

The book value of a company's common stock is determined by

Accepted Answer

A)  what buyers are willing to invest in a firm. 
B)  dividing total assets by the number of outstanding shares. 
C)  dividing total shareholders' equity by the number of outstanding shares. 
D)  dividing net profit by the number of outstanding shares. 
E)  stock brokers' opinions and ratings. 
A)  what buyers are willing to invest in a firm. 
B)  dividing total assets by the number of outstanding shares. 
C)  dividing total shareholders' equity by the number of outstanding shares. 
D)  dividing net profit by the number of outstanding shares. 
E)  stock brokers' opinions and ratings.

Question 9

Preferred stock with a $100 par value and a 6 percent dividend is currently trading on the market at $110 per share. What is the amount of the dividend the holder is entitled to receive each year?

Accepted Answer

A)  $66 
B)  6 percent of $110 
C)  $6 percent of the total book value of preferred shares 
D)  $6 
E)  $0 
A)  $66 
B)  6 percent of $110 
C)  $6 percent of the total book value of preferred shares 
D)  $6 
E)  $0

Question 10

In 2012, Canadian Pacific Railway Ltd. announced that it would make investments totaling $1.2 billion in order to improve its operating ratio, which in 2011 was the worst among North America's Big Six railways. This activity is CPR's

Accepted Answer

A)  cash flow management plan. 
B)  financial plan. 
C)  leveraging. 
D)  budget. 
E)  financial control. 
A)  cash flow management plan. 
B)  financial plan. 
C)  leveraging. 
D)  budget. 
E)  financial control.

Question 11

From an investor's perspective, common stocks are among the riskiest of securities.

Accepted Answer

A) True 
 B)False

Question 12

What is a stock's book value?

Accepted Answer

A)  The current price of a share of stock in the stock market 
B)  The average price of one share of stock over the past year 
C)  The face value of a share of stock, set by the issuing company's board of directors 
D)  The value expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  The value expressed by the number of stock shares issued by the board of directors 
A)  The current price of a share of stock in the stock market 
B)  The average price of one share of stock over the past year 
C)  The face value of a share of stock, set by the issuing company's board of directors 
D)  The value expressed as total stockholders' equity divided by the total number of shares of stock issued 
E)  The value expressed by the number of stock shares issued by the board of directors

Question 13

Why are convertible bonds attractive to investors?

Accepted Answer

They are attractive because they give th

Question 14

Hedge funds try to give their investors a positive return no matter how the stock market is performing.

Accepted Answer

A) True 
 B)False

Question 15

Accounts payable is the largest single category of short-term debt for most companies.

Accepted Answer

A) True 
 B)False

Question 16

What are the three financial or operational areas that must be carefully managed by the financial manager to provide for short-term expenditures?

Accepted Answer

- Accounts payable: to pay them on time,

Question 17

Most commodities investors have no intention of ever taking possession of the commodities in which they trade.

Accepted Answer

A) True 
 B)False

Question 18

Selling prices in the commodities market reflect traders' beliefs about the future prices of commodities, such as coffee beans, livestock, and gold.

Accepted Answer

A) True 
 B)False

Question 19

For Levi Strauss' jean-making operation, rolls of denim are considered ________, while cut-but-not-yet-sewn jeans are considered ________.

Accepted Answer

A)  work-in-process inventory; raw materials inventory 
B)  short-term capital; long-term capital 
C)  capital stock; supplies 
D)  raw materials inventory; work-in-process inventory 
E)  short-term credit; long-term credit 
A)  work-in-process inventory; raw materials inventory 
B)  short-term capital; long-term capital 
C)  capital stock; supplies 
D)  raw materials inventory; work-in-process inventory 
E)  short-term credit; long-term credit

Question 20

What factors influence the market value of a stock?

Accepted Answer

The market value of a share of stock can

The three basic types of long-term financing are debt, equity, and hybrid financing.

The "measuring stick" against which performance is evaluated is provided by

Henry has received notice from a supplier that all invoices must be paid within 30 days rather than 60 days as previously given. Which of the following will be impacted by this change?

When an investment bank underwrites a new security, they are

Commercial paper is generally issued by companies that have trouble getting regular bank loans.

The ________ is the percentage of the total sales price that a buyer must put up to place an order for a stock or a futures contract.

A business firm may elect to provide for long-term funding needs by retaining earnings instead of paying dividends to the shareholders.

The book value of a company's common stock is determined by

Preferred stock with a $100 par value and a 6 percent dividend is currently trading on the market at $110 per share. What is the amount of the dividend the holder is entitled to receive each year?

In 2012, Canadian Pacific Railway Ltd. announced that it would make investments totaling $1.2 billion in order to improve its operating ratio, which in 2011 was the worst among North America's Big Six railways. This activity is CPR's

From an investor's perspective, common stocks are among the riskiest of securities.

What is a stock's book value?

Why are convertible bonds attractive to investors?

Hedge funds try to give their investors a positive return no matter how the stock market is performing.

Accounts payable is the largest single category of short-term debt for most companies.

What are the three financial or operational areas that must be carefully managed by the financial manager to provide for short-term expenditures?

Most commodities investors have no intention of ever taking possession of the commodities in which they trade.

Selling prices in the commodities market reflect traders' beliefs about the future prices of commodities, such as coffee beans, livestock, and gold.

For Levi Strauss' jean-making operation, rolls of denim are considered , while cut-but-not-yet-sewn jeans are considered .

What factors influence the market value of a stock?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Filters

Exam 15: Finacial Decisions and Risk Management

The three basic types of long-term financing are debt, equity, and hybrid financing.

The "measuring stick" against which performance is evaluated is provided by

Henry has received notice from a supplier that all invoices must be paid within 30 days rather than 60 days as previously given. Which of the following will be impacted by this change?

When an investment bank underwrites a new security, they are

Commercial paper is generally issued by companies that have trouble getting regular bank loans.

The ________ is the percentage of the total sales price that a buyer must put up to place an order for a stock or a futures contract.

A business firm may elect to provide for long-term funding needs by retaining earnings instead of paying dividends to the shareholders.

The book value of a company's common stock is determined by

Preferred stock with a $100 par value and a 6 percent dividend is currently trading on the market at $110 per share. What is the amount of the dividend the holder is entitled to receive each year?

In 2012, Canadian Pacific Railway Ltd. announced that it would make investments totaling $1.2 billion in order to improve its operating ratio, which in 2011 was the worst among North America's Big Six railways. This activity is CPR's

From an investor's perspective, common stocks are among the riskiest of securities.

What is a stock's book value?

Why are convertible bonds attractive to investors?

Hedge funds try to give their investors a positive return no matter how the stock market is performing.

Accounts payable is the largest single category of short-term debt for most companies.

What are the three financial or operational areas that must be carefully managed by the financial manager to provide for short-term expenditures?

Most commodities investors have no intention of ever taking possession of the commodities in which they trade.

Selling prices in the commodities market reflect traders' beliefs about the future prices of commodities, such as coffee beans, livestock, and gold.

For Levi Strauss' jean-making operation, rolls of denim are considered ________, while cut-but-not-yet-sewn jeans are considered ________.

What factors influence the market value of a stock?

Understanding the Canadian Business System

The Environment of Business

Conducting Business Ethically and Responsibly

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Filters

For Levi Strauss' jean-making operation, rolls of denim are considered , while cut-but-not-yet-sewn jeans are considered .