Exam 13: Managing Financial Resources

Liabilities are debts owed by a company to outside parties.

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. -Superior will make its IPO (Initial Public Offering) in the primary market.

_____ pool funds from private and institutional sources and invest them in businesses with strong growth potential.

Your _____ schedule is the schedule by which you'll reduce the balance of your debt.

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

The _____ is a government agency that regulates banks and insures deposits in member banks up to $250,000.

When banks make business loans, they usually ask for security in the form of collateral. Why?

The three major goals of the Fed are price stability, full employment, and income distribution.

You and a friend want to open new pet grooming and pet services shop. Once established, you intend to open a second store in a larger town 20 miles away. If store number two is a success, you plan to start franchising your company. -The most important estimate in your financial plan will be your _____.

_____ are willing to invest in start-up ventures that they believe will succeed.

_____ review and recommend prospective investments to company managers.

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

For money to be useful, it must posses all of the following properties except _____.

_____ funds pay interest to investors who have pooled funds to make short-term loan to businesses and government bodies.

You and a friend want to open new pet grooming and pet services shop. Once established, you intend to open a second store in a larger town 20 miles away. If store number two is a success, you plan to start franchising your company. -Your first business loan will probably entail pledging personal or business assets in the form of _____.

The _____ rate is the rate of interest that the Fed charges member banks.

Price stability is among the three major goals of the Federal Reserve System.

_____ operations are the Fed's main tool in controlling the money supply and influencing interest rates.

Treasury bills mature in one year.

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