FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 17: Financial Management Appendix C Managing Risk

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 81

Essay

Review LaterAdd Note

Review Later

What is the overall objective of financial planning?

Correct Answer

verified

The overall objective of finan...

View Answer

Show Answer

Question 82

True/False

Review LaterAdd Note

Review Later

Equity financing represents funds provided by the owners of a firm.

Correct Answer

verified

Show Answer

Question 83

Multiple Choice

Review LaterAdd Note

Which of the following is the most popular way of raising cash among small businesses?

Financial managers often recommend that firms pay their bills as late as possible and try to collect what they are owed as soon as possible.

A capital budget combines all of the other budgets into one detailed plan used to monitor the operations of the firm.

Only financially stable firms are able to sell commercial paper to raise short-term funds.

Which of the following is the most commonly used source of short-term financing for businesses?

Factoring refers to the process of selling off accounts receivable for cash.

A loan that requires the borrower to provide collateral represents a(n) :

Retained earnings represent a source of equity financing.

After enjoying the increased sales and profits of several popular products,XYZ Inc.plans to expand their production facilities.The firm,a well-known producer of lawn care products,prefers financing this project with a funding source that avoids interest and dividend payments as well as underwriting costs.Which of the following best meets the needs of XYZ Inc.?

Many small businesses rely on factoring as a source of short-term financing because:

Why are preferred shares often referred to as a hybrid investment?

Long-term loans are often more expensive than short-term loans.

As a result of cash flow shortages,Kellco Department Stores has fallen behind in payments to suppliers.Some suppliers are withholding shipments to Kelco until they receive payments on overdue accounts.To meet their immediate needs,Kellco Department Stores should utilize:

A firm's short-term financial forecast provides an estimate of sales.

Factoring refers to the process of selling inventory to generate short-term funds.

In an effort to reduce the risk of lending money,banks require that some borrowers pledge certain types of assets as collateral.

To secure financing for a planned expansion,JamesCo Electronics borrowed $400,000 from King Finance.The______ loan agreement requires that JamesCo Electronics provide the title to their factory as collateral.

Which of these is a common source of long-term financing for a corporation?