Business Essentials chapter 4 review

Money the business owes is known as

• accounts payable.

• equity.

• accounts receivable.

• assets.

Money owed to the business is known as

• assets.

• accounts payable.

• accounts receivable.

• equity.

To keep communication flowing with other departments, the finance function depends on

• information systems.

• accounts receivable.

• production.

• marketing.

Determining which projects a business should invest in is known as

• return on capital.

• capital structuring.

• the cash conversion cycle.

• capital budgeting.

Selling shares in the company to raise money for a new venture is referred to as __________ funding.

• debt

• equity

• dividend

• accounts payable

The cash conversion cycle should be

• at equilibrium.

• as long as possible.

• on an upward trend.

• as short as possible.

Which of the following is a measure of how well a business generates cash flow:

• Accounts receivable

• Accounts payable

• Return on capital

• Capital structure

Operations managers have two main goals in mind—efficiency (keeping costs low) and

• productivity (keeping business running fast)

• effectiveness (keeping customers satisfied).

• legality (keeping the business in good standing with the law)

• reputation (keeping up the business’s good name).

• none of the above

The foundation of the operations function is

• production planning.

• quality control.

• purchasing.

• maintenance and repairs.

Which of the following is not a main factor in a business’s site selection decision:

• Media

• Community

• Labor

• Cost