< FIN 100 week 10, quiz 8 >

Question 1                                                                                                                                          2 out of 2 points

 The portion of current assets financed through long-term financing is referred to as the:

Question 2                                                                                                                                          2 out of 2 points

 One type of investment that would not be suitable for marketable securities would be:

Question 3                                                                                                                                          0 out of 2 points

 A firm can reduce its cash conversion cycle by

 Question 4                                                                                                                                         2 out of 2 points

 A mercantile credit bureau serves primarily as a (n):

 Question 5                                                                                                                                         2 out of 2 points

 Marketable securities are held primarily to meet:

 Question 6                                                                                                                                         2 out of 2 points

 Holding all other factors constant, if a firm increases its current liabilities relative to total assets,

 Question 7                                                                                                                                         2 out of 2 points

 As sales increase over time, assets will increase at the same growth rate so long as the

 Question 8                                                                                                                                         0 out of 2 points

 In a perfect world, a firm would prefer to have a

 Question 9                                                                                                                                         2 out of 2 points

 The objective of managing current assets and liabilities is to

Question 10                                                                                                                                       2 out of 2 points

 If a firm purchases materials on credit and thus has accounts payable, its cash conversion cycle will be:

Question 11                                                                                                                                       2 out of 2 points

 The most important form of short-term business financing is:

Question 12                                                                                                                                       2 out of 2 points

 The factor, unlike the commercial finance company:

 Question 13                                                                                                                                      2 out of 2 points

 Which of the following are typical financing strategies used by businesses?

 Question 14                                                                                                                                      2 out of 2 points

 The most important reason for directly issuing or using commercial paper dealers is:

 Question 15                                                                                                                                      2 out of 2 points

 The purchaser may deduct 2% from the purchase price if payment is made within 10 days; but if not paid within 10 days, the net amount of the purchase is due within 30 days. The sale is made on what terms?

Question 16                                                                                                                                       2 out of 2 points

 Which of the following short-term sources of funds is available only to the financially strongest concerns?

 Question 17                                                                                                                                      2 out of 2 points

 Commercial paper issued by large U.S. corporations is backed by:

 Question 18                                                                                                                                      0 out of 2 points

 Commercial banks lend unsecured short-term funds in the following three basic ways:

 Question 19                                                                                                                                      2 out of 2 points

 Firms who wish to obtain short-term secured loans generally have two major current assets available as collateral in the form of:

 Question 20                                                                                                                                      2 out of 2 points

 Commercial finance companies obtain loanable funds: