Help With Introduction To Business?

1. Which of the following statements about taxes is accurate? (Points : 1)
Taxes represent an inflow of cash to the firm.
Profitable businesses usually pay taxes.
Tax management falls within the responsibility of marketing managers.
Taxes cannot be managed because of fluctuations in political policy.
2. Which of the following companies is undercapitalized? (Points : 1)
A large corporation that has been hit with a major lawsuit because one of its products has a design flaw that has led to serious injuries
A new company struggling because it has insufficient start-up funds
A medium-sized company that has decided to buy out a smaller competitor
An electric utility that has recently experienced a significant increase in the cost of coal and labor
3. The budget that estimates a firm’s projected cash inflows and outflows, as well as cash shortages or surpluses during a given time period is called the ________ budget. (Points : 1)
capital
operating
cash
monetary
4. The need for operating funds: (Points : 1)
eventually is eliminated as a business matures.
increases when a firm introduces new products or enters a new market.
remains constant regardless of the activities of the firm.
is established by relevant government laws and regulations.
5. A major concern for firms selling on credit is: (Points : 1)
the realization that many credit customers always pay their bills.
the large amount of assets tied up in accounts receivable.
the resulting increase in the debt ratio for the firm.
the inability to utilize factoring as a source of financing.
6. The effective management of accounts receivable requires financial managers to: (Points : 1)
review the credit history of new customers.
provide prompt cash payments to suppliers.
allow customers more time in paying their past due accounts.
refuse bank-issued credit cards.
7. The CFO of a well known satellite radio company was trying to work his magic today as he solicited another telecommunications/entertainment company to invest in his company in order to prevent bankruptcy. Having refinanced the company less than a year ago, the satellite radio finance manager had a $75 million note coming due today. The current financing arrangement represents: (Points : 1)
A long-term sale of stock to private investors
Short-term debt financing
The issuance of long-term bonds
A leveraged buy-out
8. Some suppliers hesitate to offer trade credit to firms with a poor credit history. In these cases, the supplier may insist that the customer sign a(n): (Points : 1)
indenture agreement.
promissory note.
line of credit.
factoring agreement.
9. Business match their long-term capital needs to: (Points : 1)
the firm’s debt to equity ratio.
the ratio of long-term vs. short-term capital available.
trade credit discounts.
their long-term goals and objectives.
10. The financial manager of Carolina Graphics negotiated a ________ with her bank that allows Carolina to borrow up to $50,000 without collateral. This arrangement eliminates the need to renegotiate the terms of the loan and complete new paper work each time Carolina borrows money. The preapproved short-term loan agreement is contingent upon the bank having the funds available. (Points : 1)
line of credit
factor agreement
cash flow conversion
renewable income option
Thank you

Both comments and pings are currently closed.

Comments are closed.

Powered by WordPress | Designed by: free css template | Thanks to hostgator coupon and web hosting reviews