Busorg ch 19 quiz

all activities concerned with obtaining money and using it effectively are called financial management
money that will be used for one year or less is called short-term financing
borrowed money that will be used for more than one year is called long-term financing
to be successful while pursuing a career in finance, an employee must have strong background in accounting or mathematics
when a firm makes annual deposits to repay bondholders at maturity, it is using a sinking fund
when bonds issued at the same time mature on different dates, they are referred to as serial bonds
the steps in effective financial planning are establishing organizational goals, budgeting for financial needs, and identifying sources of financing
a statement that projects income/ or expenditures over a specified future period is called a budget
the greatest part of a firm’s financing is provided by sales revenue
money received from the sale of shares of ownership in a business is called equity capital
money obtained through various types of loans is called debt capital
when a seller allows a buyer thirty to sixty days to pay for a purchase, the sales arrangement is called trade credit
a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date is called a promissory note
the lowest rate of interest charged by a bank for a short-term loan is known as the prime interest rate
which of the following companies would most likely be able to issue commercial paper general electric
when a corporation uses initial public offering to raise capital, the stock is sold in the primary market
how many times can a corporation’s stock be sold in the primary market once
a marketplace where member brokers meet to buy and sell securities is known as a securities exchange
the NASDAQ, part of the_______ market, provides price information on more than 3600 stocks over-the-counter
the types of stock a company can sell are preferred and common
the most basic form of ownership in a corporation is common stock
the monetary value that is printed on the stock certificate is called the _______ value par
a venture capital firm consists of a pool of investors or a family partnership
interest paid on outstanding bonds usually paid semiannually, or every six months
bonds that are backed only by the reputation of the issuing corporation are known as debenture bonds

Leave a Reply

Your email address will not be published. Required fields are marked *