ICPM 3 - Chapter 9

__________ is the process of making predictions about the future based on

past data and current trends.

• Budgeting

• Forecasting

• Consolidating

• Leveraging

• Refinancing

__________ is a related type of bank financing to a line of credit that

guarantees the availability of funds for a fee.

• Revolving credit agreement

• Secured loan

• Line of credit

• Trade credit

• Unsecured loan

__________ is a detailed financial plan for the entire organization that ties

together the budgets for individual divisions, departments, and projects to

address an organization’s goals.

• Investment budget

• Forecast budget

• Cash budget

• Master budget

• Capital budget

__________ is a financial plan of the cash inflows and outflows of an

organization over a period of time to help managers anticipate borrowing

needs, operating costs, and a debt repayment plan.

• Investment budget

• Forecast budget

• Cash budget

• Master budget

• Capital budget

__________ is money raised from within the organization from operations or

through the sale of ownership.

• Equity financing

• Marketable financing

• Debt financing

• Investment financing

• Capital financing

__________ is a debt certificate issued by federal, state, local, and foreign

governments, utilities, and corporations—both noon- and for-profit.

• Risk/return trade-off

• Commercial paper

• Bond

• Term-loan agreement

• Bond indenture

__________ are low risk securities with durations that range from one day to

one year and that can easily be bought and sold on the open market.

• Marketable securities

• Financial securities

• Business securities

• Consolidation securities

• Credit securities

A long-term loan that requires a promissory note to be signed by the

borrower promising to repay the loan principle with interest in monthly

installments is best known as which of the following?

• Risk/return trade-off

• Commercial paper

• Bond

• Term-loan agreement

• Bond indenture

__________ is the process of determining an organization’s future needs and

how to achieve them.

• Forecast planning

• Budget planning

• Investment planning

• Consolidation planning

• Financial planning

__________ is a form of equity financing reserved for financing new and

emerging high-risk, high-return businesses.

• Financial capital

• Market capital

• Trade capital

• Venture capital

• Budget capital