MGT 125 Final Exam

Question 1

If a business wanted to gather up-to-the minute data on its customers, one way to do that would be

Accepted Answer

social media

Question 2

Which describes the current legal interpretation of insider trading?

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Securities info about a particular firm that is not known by the public

Question 3

A business has little chance at success without

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financial plan

Question 4

Which is a way to improve cash flow?

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Offering cash discounts to buyers who pay their accounts promptly

Question 5

The amount of info managers receive each day

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is so great that it now threatens to bury many decision makers in infoglut

Question 6

Issuing bonds to obtain long-term funds legally compels firm to pay regular__payments & repay the__at the maturity date

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Interest: Principal

Question 7

The risk/return trade-off investors assume means

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You will assume added risk, if you feel you can get a greater return

Question 8

Why are customers offered credit?

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Making it easier for customers to buy and attracting new customers

Question 9

Most basic form of company ownership & includes voting rights & dividends

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Common Stock

Question 10

Which is true?

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Financial managers need to understand accounting

Question 11

A company-wide network that is based on internet-like technology, but is closed to public access

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Intranet

Question 12

If you are selling men's clothes and learn trends in women's clothing, the info is not useful because it lacks

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relevance

Question 13

Corporations receive the proceeds for the sale of their stock in

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Primary Market

Question 14

Trading of previously issued securities from one investor to another takes place in the

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Secondary Market

Question 15

A venture capital firm will

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Probably want an ownership interest in the business

Question 16

In order to reduce the time & expense of collecting accts receivable, some firms

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accept bank credit cards

Question 17

Which is a primary area of concern for financial managers

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undercapitalization

Question 18

Corporations benefit from securities markets primary by

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Obtaining the capital they need to finance their operations

Question 19

Private investors benefit from securities markets primarily by

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Having a place to buy and sell stocks & bonds

Question 20

What is a large national electronic stock trading market

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NASDAQ

Question 21

The Dow Jones Industrial Average represents the average price of _____industrial stocks

Accepted Answer

30

Question 22

Rate of return a company must earn to meet the demands of its lenders & expectations of its equity holders

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Cost of Capital

Question 23

Which of the following represents a capital expenditure?

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Purchasing a building to be used for office space

Question 24

Transaction data gathered at the point of sale is known as

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Business process information

Question 25

Acquiring funds through borrowing represents

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debt financing

Question 26

Money has a time value because

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Money earns interest over time.

Question 27

Firm's after tax profits that are distributed to stockholders

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Dividends

Question 28

What is an advantage of selling bonds to raise long-term capital?

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Interest is a tax-deductible expense

Question 29

A first time offering of a company in the form of shares of stock to general investors

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Initial Public Offering (IPO)

Question 30

Purchasing mdse but not paying until a future date ( A form of short-term financing)

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Trade Credit

Question 31

ABC decides to offer stock to the general public after years as a privately held corp. They may learn that stockholders

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Can exercise a significant impact on company management & policies

Question 32

Condensed version of the registration statement that enables prospective investors to evaluate a stock for purchase

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Prospectus

Question 33

A variety of software applications that analyze an organizations raw data and obtain useful insights from it

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Business intelligence

Question 34

A loan backed by collateral represents

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Secured Loan

Question 35

Data mining would be most helpful to a manager that wants to

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discover unexpected relationships among the data stored by his/her org

Question 36

Info mainly used for security purposed such as fingerprinting & retinal scans is known as

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Biological Data

Question 37

Data from RFID devices, miniature cameras&wireless access used to understand where people or items are located is called

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Physical-World Observations

Question 38

If a company secures a 1-year bank loan this is also known as

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short term financing

Question 39

When cash expenditures exceed cash receipts. There is a problem with

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cash flow

Question 40

The process that identifies variances by comparing actual revenue & expenses to projected.

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Financial Control

Question 41

Issuing_____increases a firm's debt and may adversely affect the financial community's perception of the firm.

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Bonds

Question 42

When issuing stock to obtain long-term funding, dividend payments are

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Not tax deductible

Question 43

What allocates resources throughout the firm?

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budget

Question 44

An arrangement that gives the firm access to a specified amount of unsecured short-term funds.

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Line of Credit

Question 45

Diversification means

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Allocating your investment funds to several types of investments

Question 46

Technology that generates personalization for online shopping is called

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Web 3.0

Question 47

A strategy of using borrowed funds to increase the rate of return for stockholders.

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Leverage

Question 48

An investment that pools together investors' money in order to buy securities in many dif companies or governments is a

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Mutual Fund

Question 49

In the securities market, capital gains take place when

Accepted Answer

a security sells for more than the original purchase price

Question 50

Which is an example of insider trading?

Accepted Answer

You buy 500 shares because U heard from CEO Admin Assist that CEO was fired

MGT 125 Final Exam

Questions 50

MGT 125 Final Exam

Questions 50