Financial Management in Business 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. Why are government grants considered the cheapest form of long-term financing?

Question 2 2. Which type of credit involves the bank allowing a borrower to borrow money on an as needed basis up to a preset maximum?

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

Question 4 4. Which of the following is the best explanation of short-term financing?

Question 5 5. Who on a financial management team is in charge of making sure the company is appropriately insured?

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Question 6 6. What type of budget provides an estimation of costs and revenue regarding a long-term business venture or fixed asset?

Question 7 7. What involves allocating the financial resources of a company in a way that maximizes its wealth and profitability?

Question 8 8. Which of the following BEST defines long-term financing?

Question 9 9. 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 10 10. Why might a business choose trade credit over other forms of short-term financing?

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Question 11 11. Which of the following is not a source of long-term financing?

Question 12 12. Capital that has been raised through borrowing from a source outside the company?

Question 13 13. A bank loan where a company executes a promissory note, which is an unconditional promise to pay, and agrees to pay the bank the principal amount of the loan in addition to an amount of interest for use of the money is called a:

Question 14 14. Which of the following is not a source of short-term financing?

Question 15 15. 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 16 16. Why is financial feasibility an important step in financial planning?

Question 17 17. Financial planning can best be defined as a process for making sure that _____.

Question 18 18. Capital that comes from the sale of stock to investors?

Question 19 19. A financial document that provides an estimate of expenses and revenue over a specific period of time is called:

Question 20 20. What involves decisions about what investments a business will make with its resources?

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Question 21 21. Which part of financial management involves making decisions about the long-term investments the company will make?

Question 22 22. Which of the following is NOT true of investors that are issued debentures?

Question 23 23. Regarding long-term financing and government programs, loans be paid back, but grants have to be.

Question 24 24. How can a corporation raise equity capital?

Question 25 25. Determining where the company's resources go is called:

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Question 26 26. Which financial management activity involves determining the external resources that come into the company?

Question 27 27. What type of financing involves investors becoming creditors?

Question 28 28. Which of the following is NOT a feature of a stock offered to raise equity capital?

Question 29 29. Why might a company choose to sell preferred stock versus common stock?

Question 30 30. How are raising money through equity and through debt similar for a business?

Financial Management in Business 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!

Business 100: Intro to Business  /  Business Courses
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