Financial Management & Planning Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which part of financial management involves making decisions about the long-term investments the company will make?

Question 2 2. Which financial management activity involves determining the external resources that come into the company?

Question 3 3. How are the responsibilities of a credit manager different from the responsibilities of a cash manager?

Question 4 4. Who on a financial management team is in charge of making sure the company is appropriately insured?

Question 5 5. Saanya is a member of the financial management team of Crux Company Ltd. She deals exclusively with the company's accounting and financial reporting. What is Saanya's role?

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Question 6 6. Why are government grants considered the cheapest form of long-term financing?

Question 7 7. How is a secured loan different from an unsecured loan?

Question 8 8. John is the owner of a small IT company. In exchange for a financial investment, he gave his friend Katerina 10% of the company. This is an example of what type of financing?

Question 9 9. Which of the following BEST defines long-term financing?

Question 10 10. What type of financing involves investors becoming creditors?

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Question 11 11. Why is financial feasibility an important step in financial planning?

Question 12 12. After allocating the resources, a company CEO is trying to control and monitor the acquisition, allocation and utilization of the financial resources. Should the CEO even perform financial control?

Question 13 13. Tom works in accounting, and he has to prepare a budget that will take into account all of the activities of the company. There will be a strong investment from the acquisitions department that will impact their budget but is worth less than 2% of the company's value. Should Tom wait for a new report from the acquisition's department?

Question 14 14. What type of budget provides an estimation of costs and revenue regarding a long-term business venture or fixed asset?

Question 15 15. Financial planning can best be defined as a process for making sure that _____.

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Question 16 16. Barry takes out a 12 month loan from a bank to buy some new office equipment. The bank requires that Barry put up the equipment he is purchasing as collateral. What type of credit arrangement is involved?

Question 17 17. Which of the following is the best explanation of short-term financing?

Question 18 18. Kevin is an investment banker who wants to wine and dine with prospective clients. He may not have all of the cash he requires to pay. Why should he use a credit card?

Question 19 19. Which type of credit involves the bank allowing a borrower to borrow money on an as needed basis up to a preset maximum?

Question 20 20. Why might a business choose trade credit over other forms of short-term financing?

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Question 21 21. How can a corporation raise equity capital?

Question 22 22. How are raising money through equity and through debt similar for a business?

Question 23 23. Which of the following is NOT true of investors that are issued debentures?

Question 24 24. Why might a company choose to sell preferred stock versus common stock?

Question 25 25. Which of the following is NOT a feature of a stock offered to raise equity capital?

Financial Management & Planning Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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