Which of the following is not a reason it is usually easier to obtain short-term debt financing than long-term debt financing?
Lenders of short-term loans do not require collateral.
If Boeing needed a short-term loan of over $100,000 to finance its accounts receivable, which of the following would most likely be the least expensive option and involves the least risk for Boeing?
Commercial paper
When a business needs additional money to continue operations it has several options available to it. One option, a ______ , is an arrangement with the lender in which a loan is approved before the money is actually needed. While the loan is preapproved, which permits the loan to be made without delay, there is no guarantee that the lender can make the loan because the loan is contingent on the lender having sufficient funds available to make the loan.
Line of credit
When a corporation needs a larger amount of money than is possible by borrowing from one lender, or it does not want to borrow it all from one lender, which of the following might it use?
corporate bond
In the traditional approach, each new budget is based on the dollar amounts contained in the budget for the preceding year; however, in a(n) ____ every expense in every budget must be justified.
Zero-base budget
Typical job titles in finance include chief financial officer, vice-president of finance, bank officer, consumer credit officer, financial analyst, financial planner, loan officer, insurance analyst, and investment account executive. Which of the following is not one of the qualifications to have a career in finance?
A post-graduate degree
To help Moonworks expand and exploit opportunities it recognized, Bank RI granted a ______, which is a loan that is approved before the money is actually needed.
Line of credit
When Bank RI or any other bank assesses whether a business is creditworthy and capable of repaying a long- or short-term debt obligation, one of the first things they consider is the movement of money into and out of the firm, also known as
What should you tell Shaun?
Outsource the system
_____ refers to the time lag between the actual production of goods and when the goods are sold.
Speculative production
_____ provides a safe place to store money but normally generates the lowest interest income of any account.
Passbook-savings account
Businesses have four primary sources of funds. _____ generally provides the greatest part of a firm’s financing.
sales revenue
When a corporation needs money for long-term financing, where could it obtain these funds without the requirement of repayment?
Equity capital
0
847