The King's College Business Strategy Quiz #4 Finance

10 Questions | Total Attempts: 144

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Business Finance Quizzes & Trivia

This quiz is designed to test students' knowledge of the Finance module of the Capstone Foundation Simulation. The questions are taken from the situation analysis completed for homework.


Questions and Answers
  • 1. 
    1.       A share of stock is considered     3.         4.      
    • A. 

      Equity

    • B. 

      Debt

  • 2. 
    2.       You cannot issue more than 20% of the value of outstanding shares, in new stock issues.    
    • A. 

      True

    • B. 

      False

  • 3. 
    Short term debt can be borrowed up to 50% of Accounts Receivables and 50% of the value of your inventory.  
    • A. 

      True

    • B. 

      False

  • 4. 
    Current debt must be paid back in 30 days. .        6.       8
    • A. 

      True

    • B. 

      False

  • 5. 
      Current debt rates will be subject to market rate fluctuations. .
    • A. 

      True

    • B. 

      False

  • 6. 
    Long term debt in the simulation has a maturity of 15 years.    
    • A. 

      True

    • B. 

      False

  • 7. 
    Long term debt rates will fluctuate over the time that debt is outstanding.  
    • A. 

      True

    • B. 

      False

  • 8. 
    .       Newly issued long term bonds will have a coupon rate 1.4% above existing, outstanding current debt.    
    • A. 

      True

    • B. 

      False

  • 9. 
     Long term debt holders (bondholders) will be willing to loan up to 70% of the value of capacity. . 
    • A. 

      True

    • B. 

      False

  • 10. 
       Any outstanding balance on an emergency loan converts to current debt next round.    
    • A. 

      True

    • B. 

      False

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