Business

When a company sells stock to the general public for the first time, i

QUESTION When a company sells stock to the general public for the first time, it is called an initial public offering. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: Initial public offering is the name given to a company’s first-time sale of its stock to the general public.

Read full post

Date: September 3rd, 2020

Subprime loans are loans for people with blemished or limited credit h

QUESTION Subprime loans are loans for people with blemished or limited credit histories, which carry a higher rate of interest than prime loans to compensate for increased credit risk. Indicate whether the statement is true or false.   ANSWER Answer: TRUE Explanation: Subprime loans are loans for people with blemished or limited credit histories, which […]

Read full post

Date: September 3rd, 2020

Short-term financing is typically needed when a company decides to mak

QUESTION Short-term financing is typically needed when a company decides to make a major investment. Indicate whether the statement is true or false.   ANSWER Answer: FALSE Explanation: Short-term financing can help a company meet current operating needs, but long-term financing is typically needed when a company decides to make a major investment, such as […]

Read full post

Date: September 3rd, 2020

What is the name given to the overall business function of obtaining f

QUESTION What is the name given to the overall business function of obtaining funds for a company and managing them to accomplish the company’s objectives? A) finance B) forecasting C) budgeting D) asset collection E) capital expenditure   ANSWER Answer: A Explanation: A) Finance is the business function of obtaining funds for a company and […]

Read full post

Date: September 3rd, 2020