BUSN Final Exam part 4

Keisha Hunter keeps track of day-to-day operational data to make sure her employer has enough cash to run the business and will determine if and when the company she works for should open a second distribution center. Hunter is a(n) _______ manager.

financial

How would you describe the relationship between NYSE and NASDAQ?

heated competitors

The primary activity of ____ is underwriting.

investment bankers

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof. Better cash _____ might have allowed the business to continue operation.

management

making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash:

management

esselte is a swedish-based company that sells office supplies. it went public when it was founded, and it remained public until 2002 when it was taken private. now that esselte is private, it:

no longer sells stock to the public

Dividends are:

payments to the shareholders from company earnings

the securities act of 1933:

requires full disclosure of information about new securities issues

In finance, the opportunity for profit is called:

return

herschel george is a soybean farmer. he has rearranged a business loan with terms that guarantee that he can borrow up to $30,000 whenever he needs it within the next year. he must pay interest only on the unpaid loan balance. george has arranged a:

revolving credit agreement

In finance, _______ is the potential for loss.

risk

the ____ is a law that requires full disclosure of information on new issues and registration statements of financial information.

securities act of 1933

the cost of inventory to the firm includes all of the following EXCEPT:

selling costs

____ is the process of buying securities from corporations and governments and reselling then to the public

underwriting

A(n) _______ is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before their strongest sales period.

unsecured bank loan

_______ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent.

venture capitalists

_____ are investment professionals who are paid to manage other people's money

institutional investors

What is the name of the SEC regulation that requires public companies to share information with all investors at the same time?

Regulation FD

commercial paper is:

a type of IOU

term loans:

are actually described by all of the above

financial managers:

are described by none of the above

which of the following statements about competition among stock exchange is true?

electronic communications networks (ECNs) allow institutional traders to make direct transactions in what is called the fourth market.

short-term loans:

are shown as a current liability on the balance sheet

long-term debt (liabilities) for corporations and government are called:

bonds

as the toronto- based four seasons hotel chain remodels an existing hotel in mumbai to bring it to the five-star hotels exacting standards, it is building a magnificent revolving restaurant overlooking the arabian sea at world. the restaurant structure is an example of a(n):

capital expenditure

Funds invested in long-lived assets, such as land, buildings, machinery, and equipment, are called:

capital expenditures

financial managers focus on _____, the inflow and outflow of cash.

cash flows

______ stock is a security that represents an ownership interest in a corporation and has voting rights.

common

which of the following statements about the new york stock exchange (nyse) and the american stock exchange (amex) is true?

companies listed on the nyse cannot be listed on the amex at the same time

the securities exchange act of 1934 gave the sec the power to:

control the organized exchanges

____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

credit terms

The major advantage of debt financing is the:

deductibility of interest expenses

long-term debt would be used to:

do none of the above

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of a(n):

investment banker

securities that are not traded on the organized stock exchanges are traded in the:

over the counter market

Which of the following statements about preferred stock is true?

preferred stock produces a fixed-amount dividend.

Which of the following statements about preferred stock is true?

preferred stockholders are paid dividends before the company can pay any dividends to common stockholders.

_____ are the link between public companies and the investors interested in buying their stock.

stockbrokers

three important forms of long-term (capital) expenditures are:

term loans, mortgage loans, and bonds