Chapter 18 Quiz

A  amortization installment.

B  revolving line of credit.

C  repayment scheduling.

D  term loan agreement.

A  Tax management falls within the responsibility of marketing managers.

B  Taxes represent an inflow of cash to the firm.

C  Taxes cannot be managed because of fluctuations in political policy.

D  Profitable businesses usually pay taxes.

A  equity financing and trade credit.

B  debt financing and government funds.

C  debt financing and equity financing.

D  retained earnings and commercial paper.

A  portfolio manager’s

B  investment banker’s

C  financial manager’s

D  CPA’s

A  preparing financial statements.

B  forecasting financial needs.

C  developing budgets.

D  establishing financial control.

A  A medium-sized company that has decided to buy out a smaller competitor.

B  A new company struggling because it has insufficient start-up funds.

C  A large corporation that has been hit with a major lawsuit because one of its products has a design flaw that has led to serious injuries.

D  An electric utility that has recently experienced a significant increase in the cost of coal and labor.

A  intensity of competition the firm faces with new products.

B  general level of market interest rates.

C  current level of government regulations.

D  exchange rate of the euro to the U.S. dollar.

A  forecast the impact of technological trends.

B  prepare financial statements for managers.

C  establish budgets for financial control.

D  optimize the firm’s profitability.

A  develop tax strategies.

B  manage accounts payable.

C  manage accounts receivable.

D  audit the company ledgers.

A  a revolving credit agreement

B  a bond issue

C  trade credit

D  commercial paper

A  loans provided by factors do not require collateral.

B  small firms often find it difficult to qualify for bank loans.

C  factoring provides a much cheaper source of funds than bank loans.

D  interest paid to a factor qualifies for a tax credit.

A  the realization that many credit customers always pay their bills.

B  the large amount of assets tied up in accounts receivable.

C  the resulting increase in the debt ratio for the firm.

D  the inability to utilize factoring as a source of financing.

A  factoring agreement.

B  promissory note.

C  indenture agreement.

D  line of credit.

A  Secured credit

B  Trade credit

C  Revolving credit

D  Factoring

A  factor agreement

B  cash flow conversion

C  line of credit

D  renewable income option

A  undercapitalization

B  inadequate financial control

C  undervalued inventory

D  a cash flow issue

A  inadequate market control

B  poor advertising messages

C  undercapitalization

D  inability to recruit qualified workers

A  planning.

B  derivatives.

C  budgeting.

D  control.

A  forecast

B  budget

C  income statement

D  balance sheet

A  bonds

B  depreciated assets

C  retained earnings

D  stock