Question 1

The most basic form of ownership in a corporation is _____.

Accepted Answer

A)   common stock
B)   bonds
C)   preferred stock
D)   debentures
E)   dividendsF) B) and E)
G) A) and B)

Question 2

Equity capital generally provides the greatest part of a firm's financing.

Accepted Answer

A) True 
 B)False

Question 3

Max Beauty Supply has ordered $5,000 worth of merchandise from Kelly's Beauty Supply, Inc.The invoice to Max has discount terms of 2/10, net/30.Max writes a check within ten days for _____.

Accepted Answer

A)   $100
B)   $1,000
C)   $4,000
D)   $4,900
E)   $5,000F) C) and D)
G) B) and D)

Question 4

Most small businesses can expect to obtain venture capital financing if they have a good credit history of paying their bills on time.

Accepted Answer

A) True 
 B)False

Question 5

Rick's Wholesale Office Supplies prefers to handle its accounts receivable itself, but it also needs to use them to facilitate short-term borrowing.What can Rick's do?

Accepted Answer

A)   use loans secured by inventory
B)   purge its accounts receivable
C)   pledge them as collateral
D)   force all customers to pay now
E)   sell commercial paperF) B) and E)
G) B) and D)

Question 6

The use of borrowed funds to increase the return on owner's equity is called _____.

Accepted Answer

A)   financial planning
B)   investment management
C)   management leverage
D)   financial leverage
E)   return on leverageF) B) and E)
G) B) and D)

Exam 16: Mastering Financial Management

Max Beauty Supply has ordered $5,000 worth of merchandise from Kelly's Beauty Supply, Inc.The invoice to Max has discount terms of 2/10, net/30.Max writes a check within ten days for _____.

Correct Answer
verified

Most small businesses can expect to obtain venture capital financing if they have a good credit history of paying their bills on time.

Correct Answer
verified

The use of borrowed funds to increase the return on owner's equity is called _____.

Correct Answer
verified

Rick's Wholesale Office Supplies prefers to handle its accounts receivable itself, but it also needs to use them to facilitate short-term borrowing.What can Rick's do?

Correct Answer
verified

Equity capital generally provides the greatest part of a firm's financing.

Correct Answer
verified

The most basic form of ownership in a corporation is _____.

Correct Answer
verified

Exam 16: Mastering Financial Management

Max Beauty Supply has ordered $5,000 worth of merchandise from Kelly's Beauty Supply, Inc.The invoice to Max has discount terms of 2/10, net/30.Max writes a check within ten days for _____.

Correct AnswerverifiedShow Answer

Most small businesses can expect to obtain venture capital financing if they have a good credit history of paying their bills on time.

Correct AnswerverifiedShow Answer

The use of borrowed funds to increase the return on owner's equity is called _____.

Correct AnswerverifiedShow Answer

Rick's Wholesale Office Supplies prefers to handle its accounts receivable itself, but it also needs to use them to facilitate short-term borrowing.What can Rick's do?

Correct AnswerverifiedShow Answer

Equity capital generally provides the greatest part of a firm's financing.

Correct AnswerverifiedShow Answer

The most basic form of ownership in a corporation is _____.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified