last set buss

Place the three steps in the financial planning process in order from beginning to end with the first step at the top. Instructions

1. Forecasting the firm's financial needs 2. developing budgets 3. establishing financial controls

are shares of ownership in a company.

Blank 1: Stocks

A firm that makes a major investment in a long-term asset has made a(n) expenditure.

Blank 1: capital

During tough economic times, customers are happy when firms extend for purchases.

Blank 1: credit

Stockholders are the of a public corporation.

Blank 1: owners or investors

The amount a business borrows and for how long depends on which of the following? (Select all that apply)

The type of business and industry it is in How quickly it can resell the merchandise it purchases with the funds

Which are questions financial managers ask when considering long-term financing? (Select all that apply)

What funds do we need to achieve the firm's long-term goals and objectives? What sources of long-term funding (capital) are available, and which will best fit our needs? What are the organization's long-term goals and objectives?

What is a stock?

a share of ownership in a company

A company that takes out a loan from a bank is using which type of financing?

debt financing

Why can loans obtained from families and friends be problematic?

i missed it sry

What inventory management procedure helps a firm to control inventory costs?

implementing a just-in-time inventory control method

It is better to go to banks instead of family and friends for business loans because ______. (Select all that apply)

loans from family can hurt family relationships banks can assist the business in analyzing problems

Debt financing refers to funds that ______.

must be repaid

Is it more common for a firm to fail due to lack of sales or poor financial management?

poor financial management

Advantages of using a credit card in small business financing include that it ______.

saves time and is convenient provides a line of credit

A loan backed by collateral, something valuable like property, is called a(n) ______.

sec lone? i dont ****in know

A(n) ______ forecast predicts revenues, costs, and expenses for a period of one year or less.

short-term

Short-term forecasts generally cover up to a ______.

year

means to raise funds through borrowing to increase a firms rate of return.

Blank 1: Leverage

When a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using a(n) as the basis for making decisions.

Blank 1: budget

A firm raising funds through various forms of borrowing with the intent to pay it back is using financing.

Blank 1: debt

An IPO is the first public offering of a corporation's .

Blank 1: stock

The value of money is the idea that money in your possession today is worth more than money that will be in your possession in the future.

Blank 1: time

The practice of buying goods and services now and paying for them later is termed .

Blank 1: trade Blank 2: credit

In financial planning, what is the process in which a firm periodically compares its actual revenues, costs, and expenses, with its budget?

Credit cards provide a readily available line of credit that can save time. Credit cards are extremely costly and risky. Interest rates are high.

Which statements are true regarding trade credit? (Select all that apply)

It is the most widely used source of short-term funds It is used by large and small businesses It is usually more convenient than bank loans

Accepting credit cards can be useful to small businesses by

providing the business with payment more quickly providing ease of payment for customers

Short-term financing is more important to a small business than long-term financing because ______.

small businesses are more concerned with funding day to day operations

Shares of ownership in a company are called ______.

stocks

What are the three most common reasons firms fail financially?

undercapitalization inadequate expense control poor control over cash flow

Select the steps in financial planning. (Select all that apply)

develop budgets establish financial controls forecasting short term needs

Finance is the function of acquiring and management of ______.

funds

Which are forms of debt financing?

getting a loan from a bank issuing bonds

Small business managers are more concerned with ______-term funds.

short

In factoring, the discount given depends on ______. (Select all that apply)

the condition of the economy the age of the accounts receivable the nature of the business

An IPO is ______.

the first public offering of a corporation's stock

are a form of financing where the merchant accepts payment immediately from the bank and the customer agrees to repay the bank.

Blank 1: Credit Blank 2: cards

A(n) is a financial plan that sets forth management's expectations and, on the basis of those expectations, allocates the use of specific resources throughout the system.

Blank 1: budget

When a firm periodically compares its actual revenues, costs, and expenses with its budget, it is engaging in control.

Blank 1: financial

Careful control of a firm's costs allows it to maintain correct levels of stock and product.

Blank 1: inventory

Raising needed funds through borrowing to increase a firm's rate of return is called .

Blank 1: leverage

When considering - financing options a financial manager must consider the organization's financial goals and objectives.

Blank 1: long Blank 2: term

Funding day-to-day operations, acquiring needed inventory, and making capital expenditures are all needs for funds in an organization.

Blank 1: operating, operational, or operation

How much money a firm will borrow often depends on how long it takes to convert inventory into .

Blank 1: revenue, cash, or funds

A firm that puts something of value, like a piece of property, up for collateral is applying for a(n) loan.

Blank 1: secured

In a public corporation, the ownership is held by .

Blank 1: stockholders, shareholders, or investors

Major investments in either tangible long-term assets such as land, or intangible assets such as patents are considered to be ______ expenditures.

capital

Determinants of how much money a firm should borrow include the ______.

cash flow forecasts speed with which they can turn the borrowed funds into cash seasonal environment of the business

Borrowing money the company has a legal obligation to repay is ______.

debt financing

The three steps in the financial planning process are to forecast the firm's short- and long-term needs, develop budgets, and ______.

establish financial controls

The three steps in the financial planning process are to forecast the firm's short- and long-term needs, develop budgets, and ______. ..

establish financial controls

A financial institution or commercial bank that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n) ______.

factor

In any business, funds come into and go out of a business. What business function acquires funds for the firm and then manages those funds on a day-to-day basis?

finance

Needs for operating funds include ______. (Select all that apply)

making capital expenditures acquiring needed inventory controlling credit operations

Money is considered to have a time value because ______.

money has more value in your possession today than at a later point in the future

Advantages of using a credit card in small business financing include that ______.

they save time cards are accepted in many places