CHAPTER 12 MONEY AND FINANCIAL MANAGEMENT

Select the reasons for short term financing.

• Cash flow problems

• Speculative productions

• Increase inventory

• All of the above

Long term financing is the money that will be used for longer than one year.

• True

• False

Select the steps involved in financial planning

• Establishing organizational goals and objectives

• Budgeting for financial needs

• Identify sources of funds

• All of the above

Short term funds include:

• Hybrid financing, debt financing, long term finance

• Trade credit, debt financing, equity financing

• Debt financing, equity financing, hybrid financing

• Trade credit, secured term loan and unsecured term loan

Secured and unsecured loan are loan:

• with guarantor : without guarantor

• without collateral : with collateral

• with collateral : without collateral

• without guarantor : with guarantor

Equity financing involves the activities of

• issuing share and payment of dividends to shareholder

• purchasing of fixed assets

• purchasing of current assets

• borrowing money from any banks

Extended payment granted by the seller refers to?

• Trade credit

• Promissory notes

• Unsecured bank loan

• Commercial paper

The type of financing where the firm that specializes in buying other firm's account receivable refers to?

• Promissory note

• Commercial paper

• Factoring

• Mortgage

When a corporation sells common stock to the general public for the first time is called?

• Initial public offering

• Secondary market

• Common stock

• Preferred stock

Securities exchange market and over-the-counter (OTC) market such as NASDAQ, London Stock Exchange and New York Stock Exchange are the example of _____________ for Bursa Malaysia issuer.

• initial public offering

• secondary market

• common stock

• preferred stock