Intro to Business Chapter 9- Finance

In its narrowed sense, a firm's __ consists of its holdings of currency and demand deposits.

Financial managers who have a good understanding of risk-return tradeoff know that

The degree of uncertainty related to the actual outcome of a decision is referred to as

__is granted by suppliers when they ship materials,goods to a firm w/o requiring immed payment

The assumed rate of interest affects the future present value of a cash flow is known as the

A(n) ___measures the extent to which a firm relies on debt to meet its financing needs.

__ consists of stocks of goods, materials, parts,etc that firms hold as part of doing business.

__are companies providing short-term financing tofirms by purchasing accounts rec at discount

Equity financing is provided by __ while debt financing is provided by __.

__ is the area of business resonsible for finding best sources of funds and best wayto usethem

_ is used to predict when a firm will likely experience temporary shortages/ surpluses of cash

A dollar received today is worth more than a dollar received in the future. what is this?

The debt-to-equity and debt-to-assets ratios are both classified as __ ratios.

All of the following are common ways firms use to raise short-term financing EXCEPT

An advantage of offering more lenient credit terms is that it helps a firm

Financial planning asks all of the following questions EXCEPT:

__is to protectcreditors by keeping borrower from doing things to hamper ablility to repay loan

The capital budgeting process would evaluate all the following EXCEPT

__ is the use of debt in a firm's capital structure.

__is the most common method of evaluating long term investments.

Financial managers use __to assess the financial strengths and weaknesses of their firm.

Financial management includes all of the following functions EXCEPT

A cash equivalent- sells shares to lg# of investors, pool,purchase short-term liquid securities

Financial capital refers to funds a firm would use for all of the following EXCEPT

The __ forecasts types+amounts of assets firmneeds for future plans+financing to acquire assets

Financial managers measure the benefits and costs of long-term investment proposals in terms of

One drawback of offering credit customers more time to pay is that it can

A firm reinvests some of net income rather than distrib it to owners,the result is increase in

Capital __is the process a firm uses to evaluate long-term investments proposals

Key numbers that financial managers use to calculate ratios usually come from the firm's

Financing provided by a firm's owners is classified as __financing.

Earnings per share is calculated as the

The 2 primary sources of equity financing are __ and __.

The Dodd-Frank Act requires large firms in the financial sector to

A firm had an incr in profits last yr and decided to reinvest earnings.Their retained earnings

__is a form of financing for short-term needs for large,established cos bc lower int than banks

For financial managers to be socially responsible, it requires them

main advantage of financial leverage is that it __, while the main disadvantage is that it __

A(n) ___measures how effectively a firm uses its assets to generate revenue.

__consist of short-term unsecured promissory notes issued by fin.instit and other major corp

_is short-term creditoption offered by banks-guaranteed line of credit-commitment fee on unused

__are funds that arise as a natural result of firm's bus ops w/o need for special arrangements

Advantages of debt financing include all of the following EXCEPT

The main source of funds for start-up firms usually come from all of the following EXCEPT

mix of equity and debt financing firms use to meet longterm fin needs is knownas firm's capital

__are short-term IOU's issued by US government that mature in 4,13,26 weeks.

Historically the most widely accepted goal of financial management is

All of the following would be included in cash equivalents a firm might hold EXCEPT

_ ratios measure ability of org. to convert assetsto cash needed to payoff liabilities w/in yr.

Financial managers generally believe that treating all stakeholders with fairness and respect