Exam 13: Managing Financial Resources

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. -_____ will probably be the most important source of funds for your new business.

A primary market deals in new financial assets.

If Jason Freidman succeeds in getting an unsecured bank loan, he won't be required to put up collateral.

Chartered Financial Analyst is usually a corporate-finance designation.

_____is the process of monitoring cash inflows and outflows to ensure that a company has sufficient cash on hand.

A(n) _____ is the process of taking a privately held company public by selling stock for the first time.

The distinction of _____ is usually a corporate-finance designation.

In the investment industry, finance professionals can be stockbrokers.

If a bank issues you a line of credit, you can borrow:

A finance professional holds the position of _____.

Money serves all of the following basic functions except _____.

You work in customer service at a(n) _____, which is the most common type of financial institution in the U.S.

A(n) _____ market is a period of declining or sluggish stock prices.

When a family member loans money to start up a business, he or she should not insult the borrower by drawing up a formal loan agreement.

The process of raising capital though the sale of a company's stock is called _____ financing.

For money to be useful, it must be difficult to counterfeit.

All of the following are common methods of financing a new business except _____.

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. -Buyers of Superior preferred stock will enjoy safer investments but not the upside potential of investment in the company's common stock.

A financial manager determines when a company will repay the money it's borrowed.

Cash-flow management means monitoring cash inflows and outflows to ensure that a company has sufficient but not excessive cash on hand.