Question 1

The term used to describe the benefits produced by a merger or acquisition is _____.

Accepted Answer

A)   partnership
B)   leverage
C)   synergy
D)   profit

Question 2

List the major sources of short-term and long-term funds.

Accepted Answer

The major sources of short-term funds ar...

Question 3

An offer made by an outside investor or firm to the target firm's shareholders is a ____.

Accepted Answer

A)  venture capitalists
B)  private placements
C)  factoring
D)  capital investment analysis
E)  debt capitalF) equity capitalG) financial planH) leverage buyoutI) private equity fundsJ) divestureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Question 4

A company's financial plan should answer all of the following questions EXCEPT ________.

Accepted Answer

A)   What is the contingency plan in case of bankruptcy?
B)   What funds will the firm require during the appropriate period of operations?
C)   How will it obtain the necessary money?
D)   When will it need more cash?

Question 5

A company would most likely finance ________ using short-term sources.

Accepted Answer

A)   inventory
B)   buildings
C)   another company
D)   machinery

Question 6

A(n) _____ is a sale of assets by a company.

Accepted Answer

A)  venture capitalists
B)  private placements
C)  factoring
D)  capital investment analysis
E)  debt capitalF) equity capitalG) financial planH) leverage buyoutI) private equity fundsJ) divestureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Question 7

Funds obtained through borrowing are _____.

Accepted Answer

A)  venture capitalists
B)  private placements
C)  factoring
D)  capital investment analysis
E)  debt capitalF) equity capitalG) financial planH) leverage buyoutI) private equity fundsJ) divestureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Question 8

Explain the difference between an expansion decision and a replacement decision.

Accepted Answer

An expansion decision involves decisions...

Question 9

What is an LBO?

Accepted Answer

LBO-leveraged buyout-is a transaction wh...

Question 10

Trade credit is relatively easy to obtain and costs nothing unless a supplier offers a cash discount.

Accepted Answer

A) True 
 B)False

Question 11

Explain each role in the hierarchy of financial management at a large firm.

Accepted Answer

In many organizations,the top financial ...

Question 12

A(n) _____ is an executive who develops and implements the firm's financial plan and determines the most appropriate sources and uses of funds.

Accepted Answer

A)  venture capitalists
B)  private placements
C)  factoring
D)  capital investment analysis
E)  debt capitalF) equity capitalG) financial planH) leverage buyoutI) private equity fundsJ) divestureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Question 13

Hedge funds are private investment companies open only to qualified large investors.

Accepted Answer

A) True 
 B)False

Question 14

Leverage increases the potential return to a firm's shareholders,but also reduces the risk of their investment because shareholders have contributed less capital.

Accepted Answer

A) True 
 B)False

Exam 17: Financial Management

Leverage increases the potential return to a firm's shareholders,but also reduces the risk of their investment because shareholders have contributed less capital.

Correct Answer
verified

Trade credit is relatively easy to obtain and costs nothing unless a supplier offers a cash discount.

Correct Answer
verified

What is an LBO?

Correct Answer
verified
LBO-leveraged buyout-is a transaction wh...
View Answer

A company's financial plan should answer all of the following questions EXCEPT ________.

Correct Answer
verified

The term used to describe the benefits produced by a merger or acquisition is _____.

Correct Answer
verified

Explain the difference between an expansion decision and a replacement decision.

Correct Answer
verified
An expansion decision involves decisions...
View Answer

Explain each role in the hierarchy of financial management at a large firm.

Correct Answer
verified
In many organizations,the top financial ...
View Answer

A(n) _____ is a sale of assets by a company.

Correct Answer
verified

An offer made by an outside investor or firm to the target firm's shareholders is a ____.

Correct Answer
verified

Funds obtained through borrowing are _____.

Correct Answer
verified

Hedge funds are private investment companies open only to qualified large investors.

Correct Answer
verified

A company would most likely finance ________ using short-term sources.

Correct Answer
verified

A(n) _____ is an executive who develops and implements the firm's financial plan and determines the most appropriate sources and uses of funds.

Correct Answer
verified

List the major sources of short-term and long-term funds.

Correct Answer
verified
The major sources of short-term funds ar...
View Answer

Exam 17: Financial Management

Leverage increases the potential return to a firm's shareholders,but also reduces the risk of their investment because shareholders have contributed less capital.

Correct AnswerverifiedShow Answer

Trade credit is relatively easy to obtain and costs nothing unless a supplier offers a cash discount.

Correct AnswerverifiedShow Answer

What is an LBO?

Correct AnswerverifiedLBO-leveraged buyout-is a transaction wh...View AnswerShow Answer

A company's financial plan should answer all of the following questions EXCEPT ________.

Correct AnswerverifiedShow Answer

The term used to describe the benefits produced by a merger or acquisition is _____.

Correct AnswerverifiedShow Answer

Explain the difference between an expansion decision and a replacement decision.

Correct AnswerverifiedAn expansion decision involves decisions...View AnswerShow Answer

Explain each role in the hierarchy of financial management at a large firm.

Correct AnswerverifiedIn many organizations,the top financial ...View AnswerShow Answer

A(n) _____ is a sale of assets by a company.

Correct AnswerverifiedShow Answer

An offer made by an outside investor or firm to the target firm's shareholders is a ____.

Correct AnswerverifiedShow Answer

Funds obtained through borrowing are _____.

Correct AnswerverifiedShow Answer

Hedge funds are private investment companies open only to qualified large investors.

Correct AnswerverifiedShow Answer

A company would most likely finance ________ using short-term sources.

Correct AnswerverifiedShow Answer

A(n) _____ is an executive who develops and implements the firm's financial plan and determines the most appropriate sources and uses of funds.

Correct AnswerverifiedShow Answer

List the major sources of short-term and long-term funds.

Correct AnswerverifiedThe major sources of short-term funds ar...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
LBO-leveraged buyout-is a transaction wh...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An expansion decision involves decisions...
View Answer

Correct Answer
verified
In many organizations,the top financial ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The major sources of short-term funds ar...
View Answer