Finance-2nd sem-1

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

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

All of the following are considered to be marketable securities EXCEPT ________.

• treasury bills
• commercial paper
• repurchase agreements
• bonds

Kaitlyn's company needs to obtain funds in order to keep the business going; however, she does not want stockholders influencing the direction of her company. What type of financing should Kaitlyn acquire?

• Equity capital
• Combination of debt and equity capital
• Angel investor
• Debt capital

Grace is the financial manager for Empire State Fabrication and has decided to raise additional funds for the company by raising equity capital. She might do so by ________.

• establishing a line of credit with a local bank
• selling marketable securities
• persuading existing owners to contribute additional funds
• selling a bond

Borrowing money ________.

• creates leverage
• increases financial flexibility
• decreases risk to shareholders
• decreases expected returns to shareholders due to interest payments

The financial manager for a typical corporation is responsible for ________.

• designing the accounting system
• determining the most appropriate sources and uses of funds
• gathering, recording, and reporting financial information
• preparing operating budgets for various departments

a piece of paper telling a bank to pay someone money

• ATM
• check
• budget
• interest

a bank account people can use to pay for things

• checking account
• budget
• ATM
• statement

a nonprofit organization that loans money to members at low interest rates; has checking and savings accounts

• balance
• credit union
• debit card
• budget

a card used to take money out of a bank account

• interest
• ATM
• balance
• debit card