________ ensure that money lent under a line of credit agreement is actually being used to finance seasonal needs. A) Operating-change restrictions B) Annual cleanups C) Compensating balances D) Commitment fees ANSWER B
Date: September 19th, 2020
Under terms of the U.S. federal bankruptcy code, chapter ________ call for a ________ pr. A) 11; liquidation B) 7; reorganization C) 7; liquidation D) None of the above ANSWER C
Date: September 19th, 2020
The firm’s supply risk can best be analyzed by examining: A) the components of the firm’s operations management. B) the components of the firm’s operations management compared with the key industry success factors. C) the key industry success factors and their impact on profitability. D) the behavior of the firm’s major competitors. ANSWER […]
Date: September 19th, 2020
________ would be a common source of financing in international trade. A) Commercial paper B) Negotiable CDs C) Treasury bonds D) Banker’s acceptances ANSWER D
Date: September 19th, 2020
The cumulative feature of preferred stock means that preferred dividends cannot be paid until all common dividends have been paid. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A ________ guarantees the borrower that a specified amount of funds will be available regardless of the scarcity of money. A) revolving credit agreement B) mortgage loan C) short-term, self-liquidating loan D) single payment note ANSWER A
Date: September 19th, 2020
Due to regulatory capital requirements, there tends to be a concentration of preferred shares in the ________ industry. A) airline B) railroad C) power generation D) banking ANSWER D
Date: September 19th, 2020
A major assumption of breakeven analysis and one which causes severe limitations in its use is that ________. A) fixed costs really are fixed B) total revenue is nonlinear C) revenues and operating costs are linear D) all costs are really semi-variable ANSWER C
Date: September 19th, 2020
The effective interest rate generally is ________. A) higher on a loan if interest is paid at maturity B) lower if the loan is a discount loan C) higher if the loan is a discount loan D) not affected by whether the loan is a discount loan or a loan with interest paid at maturity […]
Date: September 19th, 2020
Due primarily to concerns about financial distress, we tend to see very few firms financed with ________ or more of their capital structure as debt. A) 20% B) 35% C) 55% D) 70% ANSWER D
Date: September 19th, 2020
