Business Finance

These are a borrowed capital that companies apply toward expenses that they cannot pay for themselves.

(a)  

Refers to an amount of money lent to an individual for personal, family, or household purposes. Government regulatory agencies monitor consumer loans for their compliance with consumer protection regulations such as consumer lending.

(a)  

Example 1 Mr. Morelos borrowed P500,000 for the expansion of his business. The effective rate of interest is 5%. The loan is to be repaid in full after two years. How much is to be paid after two years?

(a)  

These are a set of goals that lay out the overall direction of the company.

• Short-term financial plan

• Long-term financial plan

• Action Plan

• Tactical Plan

These are the assets used to secure the loan. It may be real-estate or other investments.

• Mortgage

• Amortization

• Loan

• Collateral

A mutual fund is a type of financial intermediary that obtains funds through the sale of shares and uses the proceeds to acquire bonds and stocks issued by various business and governmental units.

• TRUE

• FALSE

Financial managers evaluating decision alternatives or potential actions must consider

• only risk.

• only return.

• both risk and return.

• risk, return, and the impact on share price.

A loan to finance raw materials and equipment.

• business loan

• consumer loan

The major securities traded in the capital markets are ____.

• stocks and bonds.

• bonds and commercial paper.

• commercial paper and Treasury bills.

• Treasury bills and certificates of deposit.

They provide funds in exchange for collateral, usually jewelry, or other items of value.

• Credit Cards

• Suppliers Credits

• Banks

• Pawnshops