How much inventory should the company keep on hand?
Should the company close one of its current stores?
How much money should the company borrow to buy a new building?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
9.
Award: 10.00 points
Which one of the following is a working capital management decision?
What equipment will be required to complete a project?
Should the firm require immediate payment from customers or offer credit terms?
What amount of long-term debt is required to complete a project?
What percentage of the firm’s equity should the firm issue to fund an acquisition?
Which one of several acceptable projects should be implemented?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
10.
Award: 10.00 points
Which one of the following involves a working capital management decision?
What is the maximum level of cash to be kept in the firm’s bank account?
What is the most efficient process for producing a product?
How many hours of overtime should manufacturing employees be allowed to work?
When is the appropriate time to replace the delivery fleet?
Should a newly available parcel of land be acquired?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
11.
Award: 10.00 points
Deciding which long-term investment a firm should make is a ______ decision.
working capital management
capital constraints
cost of capital
capital budgeting
capital structure
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
12.
Award: 10.00 points
A firm’s mixture of debt and equity financing is the result of its ______ decisions.
working capital management
cash management
cost analysis
capital budgeting
capital structure
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
13.
Award: 10.00 points
A firm’s ______ is the firm’s mix of short-term assets and short-term liabilities.
net working capital
net debt
investment capital
net currency
capital structure
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 1 Basic Section: 1.1 Finance:
A Quick Look
14.
Award: 10.00 points
Which one of the following questions is least likely to be addressed by financial managers?
In which region of the country should a new product be launched?
Should customers be given 30 or 45 days to pay for their credit purchases?
Should the firm pay off its debt early?
Should the firm acquire new equipment?
How much cash should the firm keep on hand?
References
Multiple Choice Learning Objective:
01-01 Define the
basic types of
financial
management
decisions and the
role of the financial
manager.
Difficulty: 2
Intermediate
Section: 1.1 Finance:
A Quick Look
15.
Award: 10.00 points
A firm owned by a single person who has unlimited liability for the firm's debt is called a:
corporation.
sole proprietorship.
general partnership.
limited partnership.
limited liability company.
References
Multiple Choice Learning Objective:
01-03 Articulate the
financial implications
of the different forms
of business
organization.
Difficulty: 1 Basic Section: 1.2