Question 1

A ______ is an executive who develops and carries out a firm's financial plan and decides on the most appropriate sources and uses of funds.

Accepted Answer

A)   Controller
B)   Chief Financial Officer
C)   Vice President of Financial Planning
D)   Treasurer

Question 2

The CFO of XYZ Company uses forecast of sales and long-term projection of expenses to determine the expected level of ______ for future periods.

Accepted Answer

A)   profits
B)   funds
C)   purchases
D)   taxes

Question 3

Complete the following using the terms listed below.
-A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n)  ______.

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) divestitureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Question 4

The sovereign wealth fund is a variation of ______.

Accepted Answer

A)   the private equity fund
B)   debt capital
C)   market securities
D)   private placements

Question 5

Complete the following using the terms listed below.
-______ is the amount of assets needed to generate a given level of sales.

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) divestitureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Question 6

Mention and explain three sources of short-term funding.

Accepted Answer

Three sources of short-term funding are ...

Question 7

The exercise of employee stock options is a source of equity capital for a business.

Accepted Answer

A) True 
 B)False

Question 8

What is an LBO?

Accepted Answer

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

Question 9

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 10

Most firms invest their excess cash in marketable securities which is defined as high-risk securities that either have short-term maturities or can be easily sold in the secondary market.

Accepted Answer

A) True 
 B)False

Question 11

Complete the following using the terms listed below.
-______ consists of funds provided by the firm's owners when they reinvest earnings, make additional contributions, liquidate assets, issue stock, or raise capital.

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) divestitureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Question 12

Briefly explain the role of financial managers in an organization.

Accepted Answer

Financial managers are the executives wh...

Question 13

Explain the difference between long-term and short-term funds used by a company for its operations.

Accepted Answer

Short-term funds consist of current liab...

Question 14

A treasurer is usually responsible for preparing financial forecasts and analyzing major investment decisions related to new products, new production facilities, and acquisitions.

Accepted Answer

A) True 
 B)False

Question 15

Explain the purposes of a financial plan.

Accepted Answer

A financial plan outlines the funds requ...

Question 16

A firm's investment opportunity is a major factor when deciding its dividend policy.

Accepted Answer

A) True 
 B)False

Question 17

What is the purpose of a financial plan?

Accepted Answer

A financial plan is a document that spec...

Question 18

All of the following actions result in equity capital EXCEPT ______.

Accepted Answer

A)   issuing bonds
B)   liquidating assets
C)   issuing stock
D)   reinvesting earnings

Question 19

Short-term funds are generally more expensive than long-term funds and generally expose the firm to more risk.

Accepted Answer

A) True 
 B)False

Question 20

Complete the following using the terms listed below.
-Certificates of indebtedness sold to raise long-term funds for a corporation or government agency are known as ______.

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) divestitureK) marketable securitiesL) financial managerM) tender offerN) trade creditO) leverageP) capital structureQ) asset intensityR) bonds

Exam 17: Financial Management

The sovereign wealth fund is a variation of ______.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What is an LBO?

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

What is the purpose of a financial plan?

Correct AnswerverifiedA financial plan is a document that spec...View AnswerShow Answer

Explain the purposes of a financial plan.

Correct AnswerverifiedA financial plan outlines the funds requ...View AnswerShow Answer

Briefly explain the role of financial managers in an organization.

Correct AnswerverifiedFinancial managers are the executives wh...View AnswerShow Answer

Complete the following using the terms listed below. -Certificates of indebtedness sold to raise long-term funds for a corporation or government agency are known as ______.

Correct AnswerverifiedShow Answer

Complete the following using the terms listed below. -______ consists of funds provided by the firm's owners when they reinvest earnings, make additional contributions, liquidate assets, issue stock, or raise capital.

Correct AnswerverifiedShow Answer

A ______ is an executive who develops and carries out a firm's financial plan and decides on the most appropriate sources and uses of funds.

Correct AnswerverifiedShow Answer

A firm's investment opportunity is a major factor when deciding its dividend policy.

Correct AnswerverifiedShow Answer

Short-term funds are generally more expensive than long-term funds and generally expose the firm to more risk.

Correct AnswerverifiedShow Answer

Mention and explain three sources of short-term funding.

Correct AnswerverifiedThree sources of short-term funding are ...View AnswerShow Answer

Complete the following using the terms listed below. -______ is the amount of assets needed to generate a given level of sales.

Correct AnswerverifiedShow Answer

Explain the difference between long-term and short-term funds used by a company for its operations.

Correct AnswerverifiedShort-term funds consist of current liab...View AnswerShow Answer

All of the following actions result in equity capital EXCEPT ______.

Correct AnswerverifiedShow Answer

Most firms invest their excess cash in marketable securities which is defined as high-risk securities that either have short-term maturities or can be easily sold in the secondary market.

Correct AnswerverifiedShow Answer

The CFO of XYZ Company uses forecast of sales and long-term projection of expenses to determine the expected level of ______ for future periods.

Correct AnswerverifiedShow Answer

The exercise of employee stock options is a source of equity capital for a business.

Correct AnswerverifiedShow Answer

Complete the following using the terms listed below. -A transaction in which public shareholders are bought out and the firm reverts to private status is known as a(n) ______.

Correct AnswerverifiedShow Answer

A treasurer is usually responsible for preparing financial forecasts and analyzing major investment decisions related to new products, new production facilities, and acquisitions.

Correct AnswerverifiedShow Answer

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

Correct Answer
verified
A financial plan is a document that spec...
View Answer

Correct Answer
verified
A financial plan outlines the funds requ...
View Answer

Correct Answer
verified
Financial managers are the executives wh...
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Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Three sources of short-term funding are ...
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Correct Answer
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Correct Answer
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Short-term funds consist of current liab...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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