Search
Info
Warning
Danger

Study Resources (Business Management)

MATCHING       Complete the following using the terms listed. a.asset intensity b.private placements c.factoring d.capital investment analysis e.debt capital f.equity capital g.financial plan h.leveraged buyout i.private equity funds j.divesture k.marketable securities l.financial manager m.bonds n.trade credit o.leverage p.capital structure   1.The technique of increasing the rate of return on an investment by financing it with borrowed funds is called _____. 2._____ are low-risk securities that either have short maturities or can.
3 Views
View Answer
  48.An owner of which form of stock would receive dividend payments first? a.convertible securities b.common stock c.preferred stock d.standard stock 49.Securities are issued and traded in the ________. a.government market b.securities market c.financial market d.super market 50.Bonds with ratings of BBB and above are classified as ________. a.speculative bonds b.investment-grade bonds c.junk bonds d.corporate bonds 51.Other things being equal, as the interest rate rises, the.
0 Views
View Answer
  128.In the secondary market, firms and governments issue securities and sell them initially to the public. 129.When a company offers stock for sale to the general public for the first time, it is called an initial public offering. 130. Corporations or governments that originally issue the securities make a small percentage of.
1 Views
View Answer
  80.Short-term sources of funds are loans that are repaid within one year. 81.Firms often rely on short-term sources of funds to pay for large, permanent assets such as machinery and buildings. 82.Trade credit is relatively easy to obtain and costs nothing unless a supplier offers a cash discount. 83.Public sales can vary substantially.
1 Views
View Answer
  81.NAFTA has a carve-out for  A.Canadian eggs, sugar, poultry, and dairy. B.Mexican corn and strawberries. C.U.S. beef. D.U.S. apples. 82.Most African countries have their main trade relationships with  A.developed countries, often their former colonial powers. B.one another, within the continent. C.the U.S. and EU. D.China. 83.This country has dramatically increased trade with Africa, especially in extraction sectors.  A.China B.U.S. C.Cuba D.Russia 84.The two major developed.
0 Views
View Answer
  120.A firm's acid-test ratio can never be higher than its current ratio. 121.Ratios assist managers by interpreting actual performance and making comparisons with what should have happened. 122.A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its.
1 Views
View Answer
  131.The agreement establishing a free trade area among Canada, the U.S., and Mexico is known by the acronym  132.The export of U.S. corn to Mexico was the ________ area to have tariffs dropped.  133.Many ___________ nations have their major trade relationships with former colonial powers.  134.Mercosur and Mercosul are acronyms for the _________________,.
0 Views
View Answer
  153.Economic integration agreements are nice for the insiders, such as the U.S., Mexico, and Canada with NAFTA, but they stand in the way of WTO progress because they violate basic guidelines of the WTO. Agree or disagree.  154.Describe the impact of the EU on the non-EU firm.      .
0 Views
View Answer
  True / False Questions 1.The two major reasons U.S. firms give for not exporting are (1) preoccupation with the vast American market and (2) reluctance to become involved in a new and unknown operation.  2.The first step in finding a foreign market for a product is to determine whether a market exists.
3 Views
View Answer
  50.A company would most likely finance ________ using short-term sources. a.inventory b.buildings c.another company d.machinery 51.Which of the following assets would a firm most likely finance using long-term sources? a.inventory b.accounts receivable c.marketable securities d.another company 52.Most private placements are ________. a.U.S. government securities b.corporate debt issues c.corporate equity issues d.municipal debt issues 53. ________ would be the LEAST likely to obtain a private placement. a.Small.
1 Views
View Answer
  21.Economic cooperation often begins with a common market as in the case of the EU.  22.In a customs union, common external tariffs are added to an existing free trade area (FTA), as found in the Southern African Customs Union and Mercosur.  23.Among trading blocs, the EU has the largest GDP per capita.  24.Trading.
0 Views
View Answer
  True / False Questions 1.As discussed in the module, institutions are organizations constructed to create jobs for government employment initiatives.  2.New institutional theory suggests that institutions be understood as collections of rules and codes of conduct that limit behavior.  3.One of the significant differences between formal and informal institutions is how they gain.
4 Views
View Answer
  Essay Questions 150.Discuss the observation made recently by an undergraduate philosophy major that "the major international institutions are concerned with keeping the rich countries rich, at the expense of the poorer ones."  151.Given what you have read about institutional theory, comment on the quote from William Inge, former Dean of St. Paul's,.
0 Views
View Answer
  61.IDA's purpose is to loan to  A.the poorest nations. B.middle-income-level nations needing infrastructure. C.developed nations for use in trade stimulus efforts. D.any nation with collateral. 62.The purpose of the International Financial Corporation (IFC) is to invest in companies and financial institutions in developing countries to build  A.infrastructure. B.trade routes. C.domestic logistics. D.domestic capital markets. 63.The WTO is the only international.
0 Views
View Answer
  118.The price of a bond is affected by its interest rate. 119.Preferred stockholders receive fixed dividends. 120.Junk bonds offer higher interest than investment-grade corporate bonds. 121.The market interest rate does not have any effect on bond prices. 122.As market interest rates rise, bond prices fall. 123.Purchasers of preferred stock are the true owners of a.
1 Views
View Answer
  148.The Fed’s only tool to enact monetary policy is open market operations. 149.If the money supply grows too rapidly, inflationary pressures will begin to build. 150.M1 consists of currency in circulation and balances in bank checking accounts. 151. M2 is defined as balances in saving accounts and money market mutual funds minus M1. 152.The.
1 Views
View Answer
  71.The Doha Round's discussions are contentious on several major issues, including  A.agriculture and intellectual property rights. B.industrial goods and agriculture. C.trade barriers and duties. D.nontariff barriers and agriculture. 72.Regional trade agreements have been growing  A.to compensate for slow progress at the WTO's Doha Round. B.because it is natural for neighbors to made trade agreements. C.at the behest of.
0 Views
View Answer
  141.Institutions are socially constructed and they _______ behavior.  142.There are two types of institutions, according the new institutional theory, ________ and __________.  143.___________ institutions operate through laws and regulations to influence behavior.  144.In the free trade area, restrictions still remain on the movement of ________, capital, and people.  145.Police departments, armies, and most universities.
0 Views
View Answer
  68.Which of the following financial institutions would typically invest the largest portions of its funds in home mortgage loans? a.savings bank b.credit union c.commercial bank d.life insurance company 69.Savings banks were originally established to make ________ loans. a.home mortgage b.business c.agricultural d.automobile 70.What type of financial institution raises money from investors by selling shares? a.credit union b.property and liability insurance company c.mutual fund d.pension.
0 Views
View Answer
  138.Non-depository institutions include life insurance companies, such as Northwestern Mutual; pension funds, such as the Florida state employee pension fund; and mutual funds. 139.Deposit insurance means that, in the event the bank fails, depositors are paid in full by the FDIC, up to $250,000. 140.When evaluating loan applications, banks consider the borrower's.
1 Views
View Answer
  41.Economic integration often progresses  A.in stages, from free trade area to customs union to common market. B.in stages, totally dependent on the members' national economic strength. C.as a result of cultural beliefs and economic strength. D.in unpredictable ways due to unintended consequences. 42.Most African nations have their main trade relationships  A.within local FTAs. B.with other African nations.
0 Views
View Answer
  ESSAY 17.Explain each role in the hierarchy of financial management at a large firm. 18.Explain the concept of risk-return trade-off. 19.Explain what can be indicated by the growing importance of financial professionals. 20.Explain how the cash inflows and outflows of a business are similar to those of a household.     .
1 Views
View Answer
  MULTIPLE CHOICE 30.The financial manager for a typical corporation is responsible for ________. a.designing the accounting system b.gathering, recording, and reporting financial information c.determining the most appropriate sources and uses of funds d.preparing operating budgets for various departments 31.The senior financial manager has the title of ________. a.chief financial officer b.chief operations officer c.treasurer d.controller 32.Which of the following is the.
1 Views
View Answer
  88.The chairman of the Federal Reserve Board can accelerate economic activity by lowering interest rates. What primary method does the Federal Reserve use to accomplish this? a.selling margin requirements b.increasing the discount rate c.increasing reserve requirements d.open market operations 89.The SEC requires virtually all new public issues of corporate securities to be registered. As part.
0 Views
View Answer
  108.CDs with denominations of $1,000,000 or less per depositor are federally insured. 109.Jeff wants to purchase a low-risk bond. Therefore, he should buy a government bond. 110.The Treasury sells government bonds that mature in 2, 5, 10, and 30 years from the date of issue. 111.Corporate bonds that are only backed by the.
0 Views
View Answer
  TRUE/FALSE 60.In most firms the controller is the chief accounting manager. 61.In many companies, a CEO is promoted to the position of CFO. 62.Financial managers are responsible for increasing profits to shareholders. 63.The treasurer is the chief financial officer of most firms. 64.Virtually all financial decisions involve a trade-off between risk and return. 65.Risk is defined.
1 Views
View Answer
  Multiple Choice Questions 31.IMF quotas are determined by the relative size of a nation in the global economy and  A.are the nation's "dues" to the IMF. B.limit trade among IMF members. C.are payable in SDRs. D.may run in arrears for five years. 32.The IMF initially played a central role in  A.establishing trade initiatives through GAAP measures. B.supporting war-torn.
0 Views
View Answer
  11.The Bretton Woods Conference established the European Union currency, the euro.  12.The World Bank funds infrastructure projects in developed countries.  13.Some think that renewed focus on exchange rates would be a good path forward for the IMF, which is struggling with core issues related to its purpose.  14.The World Bank is made up.
0 Views
View Answer
  38.________ are short-term securities issued by the U.S. Treasury and backed by the full faith and credit of the U.S. government. a.Treasury bills b.CDs c.Commercial papers d.Bonds 39.Treasury bills have a minimum denomination of ________. a.$100,000 b.$10,000 c.$1,000 d.$100 40.A ________ is a time deposit at a financial institution, such as a commercial bank, savings bank, or credit union. a.commercial paper b.Treasury.
0 Views
View Answer
  MULTIPLE CHOICE 28. The ________ is the process by which money flows from savers to users. a.financial system b.stock market exchange c.net user d.net saver 29.In the U.S. financial system, which of the following is a net saver? a.households b.business c.the government d.financial institutions 30.Who participates in the financial system? a.businesses b.governments c.individuals d.all of the above 31.This question intentionally omitted. 32.Funds can be transferred between savers.
0 Views
View Answer
  121.The principles of the WTO include trade without discrimination, known as the ____________ principle.  122.The WTO's second principle is _____________ trade through negotiation.  123.An agreement on a tariff amount that gives businesspeople a clear idea of what the tariff will be over time is known as a  124.In 2005, Brazil sued the U.S..
0 Views
View Answer
  111.The room arrangement of the ________ is notable because it is circular.  112.The Bretton Woods conference convened by the UN near the close of WWII established two monetary institutions, _____________ and ___________.  113.The _________ promotes orderly FX exchange arrangements and makes funds available for balance-of-payments corrections.  114.IMF _________ or dues determine voting rights.
0 Views
View Answer
  70.The major purpose of cash is to pay day-to-day expenses. 71.Managing assets for an international company creates several new challenges for a financial manager. 72.The balance sheet hedge is often one of the most difficult activities for minimizing the challenges that come with exchange rates. 73.Whenever a company borrows money, it creates leverage. 74.Debt.
1 Views
View Answer
MATCHING       Complete the following using the terms listed. a.bonds b.commercial banks c.NASDAQ d.credit unions e.financial system f.common stock g.insider trading h.secondary markets i.securities j.New York Stock Exchange k.online banking l.limit order m.debentures n.primary market o.net savers 1._____ refer(s) to the basic form of corporate ownership. 2.The _____ is sometimes referred to as the Big Board, the most famous and one of the oldest stock markets in the world,.
2 Views
View Answer
  21.Explain the differences between market orders and limit orders. 22.Explain what a credit union is and give an example of one. 23.What are financial institutions? 24.What is the Federal Reserve's most important function? How does this function affect the nation’s rate of inflation and employment?     .
0 Views
View Answer
  58.The most common type of order is called a ________. It instructs the broker to obtain the best possible price—the highest price when selling and the lowest price when buying. a.fast order b.stock order c.market order d.limit order 59.In which stock exchange does trading and selling take place through an intranet rather than on a.
0 Views
View Answer
  100.The not-for-profit sector is one of the fastest growing segments of accounting practice. 101.The primary role of government accountants is to determine how efficiently their organizations have accomplished their objectives. 102.Miles is an accountant and works for a firm that provides tax planning and preparation services to other businesses. Miles is a.
1 Views
View Answer
  101.An informal cognitive institution is  A.a collection of shared ideas that define reality, such as a collection of assumptions around a cultural pattern. B.a culturally determined way of thinking, such as inductive. C.an approach to exploring ideas, such as Aristotelian dialog. D.a way to approach thinking challenges, such as brainstorming, tree diagrams. 102.Guanxi is  A.a Chinese.
0 Views
View Answer
  40.Major current assets include all of the following EXCEPT________. a.accounts receivable b.stockholders’ equity c.marketable securities d.cash 41.All of the following actions result in equity capital EXCEPT ________. a.issuing bonds b.liquidating assets c.issuing stock d.reinvesting earnings 42.Central Valley Pharmaceuticals needs to raise funds to buy new production equipment. The financial manager would probably suggest that his company raise debt capital by.
1 Views
View Answer
  78.This question omitted intentionally. 79.The rate the Fed charges member banks for short-term loans is called the ________. a.discount rate b.margin rate c.federal funds rate d.reserve requirement 80. When the Fed uses open market operations, it employs the so-called ________, or the rate at which banks lend money to each other overnight, as its benchmark. a.discount rate b.reserve.
0 Views
View Answer
  98. Funds can be transferred between savers and users in two ways: fast and slow. 99.The financial system describes the process by which funds flow from savers to users. 100.Securities represent obligations on the part of issuers—businesses and governments—to provide purchasers with expected or stated returns on the funds invested or loaned. 101.Money.
0 Views
View Answer
  91.Daily operations of the EU are conducted by the  A.European Commission. B.European Parliament. C.Council of the European Union. D.European Administrative Coalition. 92.EU policies  A.affect global business, even if the EU is not directly involved. B.only affect trade with the EU. C.have little impact on global trade. D.are optional for most globally traded goods. 93.Mark Malloch Brown suggests that  A.as the world.
0 Views
View Answer
  110.The balance sheet is based on the accounting equation. 111.Assets are shown in ascending order of liquidity. 112.The right side of the balance sheet lists claims against assets. 113.On a balance sheet, total assets must always equal the sum of liabilities and owners’ equity. 114.The three principal financial statements are the balance sheet, income.
1 Views
View Answer
  51.In developing economies, informal institutions tend to play a greater role than in developed economies, possibly because  A.the developing economies have more ambiguity and lack formal institutions by definition, so informal institutions step into the breach. B.developing economies show cultural preference for informality. C.these economies have not learned about formal institutions. D.informal institutions are.
0 Views
View Answer