Chapter 18 Quiz

A  revolving line of credit.

B  repayment scheduling.

C  term loan agreement.

D  amortization installment.

A  Tax management falls within the responsibility of marketing managers.

B  Profitable businesses usually pay taxes.

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

D  Taxes represent an inflow of cash to the firm.

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  financial manager’s

C  CPA’s

D  investment banker’s

A  forecasting financial needs.

B  developing budgets.

C  establishing financial control.

D  preparing financial statements.

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

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

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

D  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.

A  general level of market interest rates.

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

C  intensity of competition the firm faces with new products.

D  current level of government regulations.

A  prepare financial statements for managers.

B  forecast the impact of technological trends.

C  establish budgets for financial control.

D  optimize the firm’s profitability.

A  develop tax strategies.

B  manage accounts receivable.

C  audit the company ledgers.

D  manage accounts payable.

A  a bond issue

B  a revolving credit agreement

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 resulting increase in the debt ratio for the firm.

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

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

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

A  indenture agreement.

B  factoring agreement.

C  promissory note.

D  line of credit.

A  Trade credit

B  Secured credit

C  Factoring

D  Revolving credit

A  factor agreement

B  cash flow conversion

C  renewable income option

D  line of credit

A  inadequate financial control

B  a cash flow issue

C  undercapitalization

D  undervalued inventory

A  poor advertising messages

B  inability to recruit qualified workers

C  inadequate market control

D  undercapitalization

A  planning.

B  derivatives.

C  budgeting.

D  control.

A  balance sheet

B  budget

C  income statement

D  forecast

A  retained earnings

B  bonds

C  stock

D  depreciated assets