Because managing inventory is just like managing any other investment, decisions about the level of inventory should be guided by the effect of inventory levels on sales. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
The basic strategies for determining the appropriate financing mix are ________. A) seasonal and permanent funding B) short-term and long-term financing C) aggressive and conservative funding D) current and non-current liabilities ANSWER C
Date: September 19th, 2020
If a firm uses an aggressive financing strategy, ________. A) it increases return and increases risk B) it increases return and decreases risk C) it decreases return and increases risk D) it decreases return and decreases risk ANSWER A
Date: September 19th, 2020
A _ merger occurs between two firms that had been doing business in different stages of the production process in a given industry. a. conglomerate b. vertical c. diagonal d. horizontal ANSWER B
Date: September 19th, 2020
In economic conditions characterized by short-term interest rates which exceed long-term interest rates, the financing strategy which would maximize profits is ________ strategy. A) the aggressive B) the conservative C) the trade-off D) a seasonal ANSWER B
Date: September 19th, 2020
A firm with a very low current ratio in comparison to the industry standard could lower the risk of unavailable short-term funds by moving toward ________ financing strategy. A) the aggressive B) the conservative C) a permanent D) a seasonal ANSWER B
Date: September 19th, 2020
A firm which uses the aggressive financing strategy plans to purchase a major fixed asset financed with a loan. The most likely consequence of this action is ________. A) a decrease in the current ratio B) an increase in net working capital C) a decrease in the risk of insolvency D) an increase in long-term […]
Date: September 19th, 2020
A _ merger involves the combination of two firms in unrelated industries. a. conglomerate b. vertical c. diagonal d. horizontal ANSWER A
Date: September 19th, 2020
obtains if a merger results in improvements in any business function, including: (i) management; (vii) labor costs; (ii) production or distribution; etc. a. Operating synergy b. Financial synergy c. Business synchronization d. Economies of scope ANSWER A
Date: September 19th, 2020
obtains in a merger if some aspect of the financial configuration of the merged firm causes its market value to be greater than the sum of the market values of the separate firms. a. Operating synergy b. Financial synergy c. Business synchronization d. Economies of scope ANSWER B
Date: September 19th, 2020
