Business Foundation Quiz 19

In finance, the opportunity for profit is called:

return

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

Credit terms

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

Venture capitalists

When a firm goes public, it must reveal such information as:

all of the above

Private individual investors who sometimes provide venture capital to small firms in need of equity capital are called:

angel investors

Organized stock exchanges operate like a(n):

auction company

Long-term debts (liabilities) for corporations and governments are called:

bonds

Capital budgeting:

selects asset proposals for maximum profitability

A company sells its accounts receivable to a financial institution that is in the business of buying accounts receivable at a discount. This sale is called:

factoring

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals.

Financial