A firm’s capital structure combines all forms of long-term financing on which the firm relies EXCEPT: A) long-term debt. B) common equity. C) inventory. D) preferred shares. ANSWER C
Date: September 19th, 2020
The profitability index measure is useful for ranking a series of projects based on the notion of getting “bang for your buck,” or receiving as much value added as possible in excess of each dollar of investment. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Which of the following is NOT an example of a type of inventory management activity? A) JIT or just-in-time inventory control system B) RFI or radio frequency identification systems. C) EOQ or economic order quantity formulas. D) All of the above are forms of inventory control. ANSWER D
Date: September 19th, 2020
When a country imports more than it exports, it will: A) be known as a net importing country and this portion of the GDP will have positive value. B) be known as a net importing country and this portion of its GDP will have a negative value. C) be known as a net exporting country […]
Date: September 19th, 2020
A firm’s operating breakeven point is the level of sales necessary to cover all fixed operating costs. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
Under a line of credit agreement, a bank may retain the right to revoke the line if any major changes occur in the firm’s financial condition or operations. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
Capital structure is important, but it CANNOT impact the overall value of a firm. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
There are limitations to using the net present value method. Note that a very small project might have a net present value, but in dollar terms, it might add only a small amount of value compared with a larger project with a lower net present value. Indicate whether the statement is true or false […]
Date: September 19th, 2020
Which of the following in NOT a potential benefit of granting trade credit? A) Enhances competitiveness for the firm granting credit. B) A delay in receiving payment from customers. C) May assist in generating additional sales. D) May allow quicker movement of inventory. ANSWER B
Date: September 19th, 2020
Different sectors or industries grow or shrink at various stages in the business cycle. Which statement is TRUE? A) Utilities tend to do relatively better in the early stages of an expansion. B) Basic materials tend to do well in the early stages of a recession. C) Healthcare tends to do well at the peak […]
Date: September 19th, 2020
