Financial Management Quiz

Your product is totally customized. Then your production will be serial

• True

• False

The liabilities of a company are "uses of funds" because they are used to repay debt and financial expenses

• True

• False

Your product is a commodity. In mot of the cases, the competition will be big

• True

• False

If Equity + Debt are bigger than the net Assets, the difference will be In cash

• True

• False

The WC cycle shows

• The amount of time it takes a company to generate final good from raw materials

• The amount of time it takes to turn the Net Current Assets and Current Liabilities into cash

• How companies want to have big WC cycles because it means the need of credit

• How much time it takes a company to rise capital from shareholders

Boeing has fewer inventories as a percentage of sales than Zara

• True

• False

When the competition is strong. The GM is also strong

• True

• False

The result of NFO - WC could be covered with equity

• True

• False

Net Assets are financed solely with Debt and Equity

• True

• False

If sales are seasonal, WC is also seasonal

• True

• False