Business Quiz: Mastering Financial Management

10 Questions | By Susanjoypaul | Last updated: Mar 21, 2022 | Total Attempts: 174

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Book reference for the quiz: Business (Pride, Hughes, & Kapoor, 2014)

Questions and Answers

1.

One of the most important priorities for someone interested in a finance career is (select the best answer):
- A.
  
  Making money
- B.
  
  Dressing well
- C.
  
  Having a nice car
- D.
  
  Honesty
2.

Short-term financing is money that will be used for five years or less.
- A.
  
  True
- B.
  
  False
3.

The steps in financial planning include (check all that apply):
- A.
  
  Establishing organizational goals and objectives
- B.
  
  Setting up a slush fund
- C.
  
  Budgeting for financial needs
- D.
  
  Identifying sources of funds
4.

Short-term debt financing is usually easier to obtain than long-term debt financing because (select the best answer):
- A.
  
  For the lender, the shorter repayment period means less risk of non-payment.
- B.
  
  The dollar amounts of short-term loans are usually smaller than those of long-term loans.
- C.
  
  A close working relationship normally exists between the short-term borrower and the lender.
- D.
  
  All of the above
5.

Unsecured financing is financing that is not backed by collateral.
- A.
  
  True
- B.
  
  False
6.

Sources of unsecured short-term financing include (check all that apply):
- A.
  
  Trade credit
- B.
  
  Promissory notes issued to suppliers
- C.
  
  Unsecured bank loans
- D.
  
  Commercial paper
- E.
  
  Inventory
- F.
  
  Accounts receivable
- G.
  
  All of the above
7.

A factor is a firm that specializes in buying other firms’ (select the best answer):
- A.
  
  Trade credit
- B.
  
  Promissory notes
- C.
  
  Inventory
- D.
  
  Accounts receivable
8.

An initial public offering (IPO) occurs when a corporation sells common stock to the general public for the first time.
- A.
  
  True
- B.
  
  False
9.

The secondary market is a market for existing financial securities that are traded between investors, and includes (check all that apply):
- A.
  
  Initial public offerings
- B.
  
  Primary markets and investment banking firms
- C.
  
  Securities exchanges
- D.
  
  The over-the-counter (OTC) market
- E.
  
  All of the above