Quiz 14 Chapter 19 "Financial Management"

If your company needs a loan that is too large for any one bank to responsibly lend, what is your best option for receiving the money?

A syndicated loan

What happens when an overdraft occurs and the positive balance exceeds the agreed terms?

Additional fees may be charged

What type of financial manager usually oversees accounting and the budget department?

Controllers

What in unique about an annuity loan repayment structure?

Each installment is the same amount

Which of the following is NOT a characteristic of cash and cash equivalents?

Long-term

Suppose you are a loan officer with a conservative approach to lending. What is the safest type of loan to give?

Secured/senior debt

When a few suppliers' credentials and history are analyzed with the purpose of selecting one, it is called:

Shopping

Which of the following is NOT an advantage of person to person lending?

Simple compliance to legal regulations

What happens if the borrower defaults on paying back a secured loan, and the sale of the collateral is not enough to pay back the remainder of the loan?

The creditor obtains a defficiency judgement

The greatest value of credit cards to merchants is:

The issuing bank commits to payment

From this week's video, a bond is a loan where you pay someone back with interest

True

From this week's video, which of the following is NOT an advantage to equity financing for a business?

you don't have to give up equity in your business to anyone else