Introduction to Financial Management - BSEntrep 3C

Which of the following is a primary objective of liquidity management?

• Maximizing profits

• Minimizing debt

• Maintaining solvency

• Increasing sales

What is a common characteristic of marketable securities?

• High liquidity

• Long-term investment horizon

• High risk

• Low return

The trade-off between liquidity and profitability is known as:

• Risk-return trade-off

• Liquidity-profitability trade-off

• Cost-benefit analysis

• Profit margin analysis

Which of the following is NOT a marketable security?

• Treasury bills

• Commercial paper

• Corporate bonds

• Inventory

Effective cash management involves:

• Maximizing idle cash

• Investing in long-term assets

• Ensuring cash availability when needed

• Increasing inventory levels

Accounts receivable management primarily focuses on:

• Increasing inventory turnover

• Reducing credit sales

• Accelerating cash collection

• Decreasing accounts payable

Which method is used to monitor accounts receivable?

• Just-in-time

• Aging schedule

• Economic order quantity

• Break-even analysis

Inventory management aims to:

• Minimize carrying costs and stockouts

• Maximize production downtime

• Increase raw material costs

• Decrease cash flow

Short-term financing is usually intended for:

• Long-term projects

• Daily operations

• Capital expenditures

• Real estate investment

Which of the following is a source of short-term financing?

• Corporate bonds

• Trade credit

• Mortgages

• Equity financing