What company that wanted to increase its capital through debt financing could trade in markets?

What company that wanted to increase its capital through debt financing could trade in markets?
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bond market my fellow peeps
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Which of the following statements is most correct? A. For small companies, long-term debt is the principal source of external financing. B. Current assets of the typical manufacturing firm account for over half of its total assets. C. Strict adherence to the maturity matching approach to financing wD. Similar to the capital structure management, working capital management requires the financial manager to make a decision and not address the issue again for several months.ould call for all current assets to be financed solely with current liabilities.

Description : Which of the following statements is most correct? A. For small companies, long-term debt is the principal source of external financing. B. Current assets of the typical manufacturing firm account ... the financial manager to make a decision and not address the issue again for several months.

Last Answer : B. Current assets of the typical manufacturing firm account for over half of its total assets.

Which of the following statements relating to working capital financing is not correct? A. An aggressive policy uses long-term debt to finance fluctuating current assetsB. Long-term debt is less risky that short-term debt C. A conservative policy uses long-term debt to finance fixed assets D. Short-term debt is cheaper than long-term debt E. The matching principle indicates that fluctuating current assets should be financed by short-term debt

Description : Which of the following statements relating to working capital financing is not correct? A. An aggressive policy uses long-term debt to finance fluctuating current assets B. Long-term debt ... . The matching principle indicates that fluctuating current assets should be  financed by short-term debt

Last Answer : A. An aggressive policy uses long-term debt to finance fluctuating current assets

Which of the following would be consistent with a hedging (maturity matching) approach to financing working capital? A. Financing short-term needs with short-term funds B. Financing short-term needs with long-term debt. C. Financing seasonal needs with long-term funds. D. Financing some long-term needs with short-term funds.

Description : Which of the following would be consistent with a hedging (maturity matching) approach  to financing working capital? A. Financing short-term needs with short-term funds B. Financing short-term needs ... needs with long-term funds. D. Financing some long-term needs with short-term funds.

Last Answer : A. Financing short-term needs with short-term funds

Which of the following would be consistent with a conservative approach to financ ing working capital? A. Financing short-term needs with short-term funds. B. Financing short-term needs with long-term debt. C. Financing seasonal needs with short-term funds. D. Financing some long-term needs with short-term funds.

Description : Which of the following would be consistent with a conservative approach to financ ing  working capital? A. Financing short-term needs with short-term funds. B. Financing short-term needs with long- ... seasonal needs with short-term funds. D. Financing some long-term needs with short-term funds.

Last Answer : B. Financing short-term needs with long-term debt.

Which of the following would be consistent with an aggressive approach to financ ing working capital? A. Financing short-term needs with short-term funds. B. Financing permanent inventory buildup with long-term debt. C. Financing seasonal needs with short-term funds. D. Financing some long-term needs with short-term funds

Description : Which of the following would be consistent with an aggressive approach to financ ing  working capital? A. Financing short-term needs with short-term funds. B. Financing permanent inventory buildup with ... needs with short-term funds. D. Financing some long-term needs with short-term  funds

Last Answer : D. Financing some long-term needs with short-term  funds.

Which of the following illustrates the use of a hedging approach to financing assets? A. Temporary current assets financed with long-term liabilities. B. Permanent working capital financed with long-term liabilities. C. Short-term assets financed with equity D. All assets financed with a mixture of 50% equity and 50% long-term debt

Description : Which of the following illustrates the use of a hedging approach to financing assets? A. Temporary current assets financed with long-term liabilities. B. Permanent working capital financed with long-term ... equity D. All assets financed with a mixture of 50% equity and 50% long-term debt

Last Answer : B. Permanent working capital financed with long-term liabilities.

Capital used for financing activities can be acquired through_______________. a. Current debt b. Stock issues c. Bond issues d. Profits e. All the above

Description : Capital used for financing activities can be acquired through_______________. a. Current debt b. Stock issues c. Bond issues d. Profits e. All the above

Last Answer : e. All the above

________ are financial markets for the buying and selling of long-term debt or equity-backed securities. A. Bullion Market B. Capital Market C. Money Market D. All of the Above E. None of the Above

Description : ________ are financial markets for the buying and selling of long-term debt or equity-backed securities. A. Bullion Market B. Capital Market C. Money Market D. All of the Above E. None of the Above

Last Answer : B. Capital Market Explanation: Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc

The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly known as: a) Ricardian theory of equivalence b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Description : The idea that irrespective of how a government chooses to increase spending, either by debt financing or tax financing, the outcome will be the same and demand will remain unchanged, is popularly ... b) Ricardian theory of competitive advantage c) Ricardian theory of stability d) None of the above

Last Answer : a) Ricardian theory of equivalence David Ricardo was a British political economist and his most famous theory was that of comparative advantage (along with above theory of Ricardian ... nation should use its resources solely in industries where it has the most international competitiveness

Which of the following factors does not need to be considered when formulating policies on the level and financing of working capital? A. The attitude to risk of a company’s managers B. The relative cost of short-term and long-term finance C. The availability of revenue reserves and capital reserves D. Terms of trade offered by competitors

Description : Which of the following factors does not need to be considered when formulating  policies on the level and financing of working capital? A. The attitude to risk of a company's managers B. ... C. The availability of revenue reserves and capital reserves D. Terms of trade offered by competitors

Last Answer : C. The availability of revenue reserves and capital reserves

Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate form for financing a new capital investme nt in plant and equipment? A. Trade credit. B. 6-month bank notes. C. Accounts payable. D. Common stock equity

Description : Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate form for financing a new capital investme nt in plant and equipment? A. Trade credit. B. 6-month bank notes. C. Accounts payable. D. Common stock  equity

Last Answer : D. Common stock  equity. 

Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Description : Interest paid by the government on the loans raised is called - (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Last Answer : (1) Debt Servicing Explanation: Debt service is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds. or the principal of maturing bonds. An ... or company unable to make such payments is said to be "unable to service one's debt."

Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes total assets to fall below the total long-term financing? A. Use the excess funds to pay down long-term debt. B. Invest the excess long-term financing in marketable securities. C. Use the excess funds to repurchase common stock. D. Purchase additional plant and equipment.

Description : Under a conservative financing policy a firm would use long-term financing to finance some of the temporary current assets. What should the firm do when a "dip" in temporary current assets causes ... C. Use the excess funds to repurchase common stock. D. Purchase additional plant and equipment.

Last Answer : B. Invest the excess long-term financing in marketable securities.

The contractor provides the financing and is paid an agreed fraction of actual savings achieved. This payment is used to pay down the debt costs of equipment and/or services. This is known as a) traditional contract b) extended technical guarantee/service c) performance Contract d) shared savings performance contrac

Description : The contractor provides the financing and is paid an agreed fraction of actual savings  achieved. This payment is used to pay down the debt costs of equipment and/or services.  ... contract b) extended technical guarantee/service c) performance Contract d) shared savings performance contrac

Last Answer : d) shared savings performance contrac

Debt financing is a cheaper source of finance because of A. Time value of Money B. Rate of Interest C. Tax deductibility of Interest D. Dividends not payable to lenders.

Description : Debt financing is a cheaper source of finance because of A. Time value of Money B. Rate of Interest C. Tax deductibility of Interest D. Dividends not payable to lenders.

Last Answer : C. Tax deductibility of Interest

In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above

Description : In general, deficit financing can create inflation, but it can be checked if. A) Government expenditure increases the aggregate supply in the aggregate demand ratio B) All the investment is indicated as payment on national debt only C) Only aggregate demand is increased D) All of the above

Last Answer : Answer: D

Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan

Description : Interest paid by the government on the loans raised is called (1) Debt Servicing (2) Deficit Financing (3) Discounted Budgeting (4) Bridge-loan 

Last Answer :  Debt Servicing

Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of working capital management are profitability and liquidity C. Permanent current assets should be financed from long-term sources if a moderate or matching policy is adopted D. Conservative financing policies use short-term funds to finance only part of fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk

Description : Identify the incorrect statement in connection with working capital management. A. Long-term funds are more expensive than short-term funds but also riskier B. The objectives of ... fluctuating current assets E. Aggressive financing policies increase profitability at the cost of higher risk

Last Answer : A. Long-term funds are more expensive than short-term funds but also riskier

Capital needed for company activities cannot be acquired through: a. stocks and bonds. b. profits. c. current debt. d. arbitrarily firing employees. e. all of the above.

Description : Capital needed for company activities cannot be acquired through: a. stocks and bonds. b. profits. c. current debt. d. arbitrarily firing employees. e. all of the above.

Last Answer : d. arbitrarily firing employees.

Which of the following is/are non-banking subsidiary of the State Bank of India? A. SBI Capital Markets Ltd. B. SBI General Insurance Company Limited. C. SBI Funds Management Pvt Ltd. D. All of the Above E. None of the Above

Description : Which of the following is/are non-banking subsidiary of the State Bank of India? A. SBI Capital Markets Ltd. B. SBI General Insurance Company Limited. C. SBI Funds Management Pvt Ltd. D. All of the Above E. None of the Above

Last Answer : D. All of the Above Explanation: SBI has the following Non-Banking Subsidiaries in India: SBI Capital Markets Ltd. SBI Funds Management Pvt Ltd. SBI Global Factors Ltd. SBI Cards & Payments ... (SBICPSL) SBI DFHI Ltd. SBI General Insurance Company Limited. SBI Pension Funds Pvt Ltd (SBIPFPL)

Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the return to shareholders. c. Setting accounts payable and accounts receivable policies. d. Driving the financial structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget

Description : Which of the following is not one of the primary concerns in the Finance Department? a. Acquiring the capital needed for company activities. b. Establishing a dividend policy that maximizes the ... structure of the firm, its relationship between debt and equity. e. Deciding promo and sales budget

Last Answer : e. Deciding promo and sales budget

The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding Pensions, and Stock Issues c. Liquidating Inventory, Stock Issues, Bond Issues and Profits d. Credit Lines, Bond Issues, Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

Description : The Finance Department can use which of the following methods to acquire capital for company activities? a. Current Debt, Stock Issues, Bond Issues, and Profits b. Profits, Current Debt, Withholding ... Stock Issues, and Profits e. Current Debt, Stock Issues, Bond Issues, and cooking the books

Last Answer : a. Current Debt, Stock Issues, Bond Issues, and Profits

Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate non-spontaneous form for financing the excess seasonal current asset needs? A. Trade credit. B. 6-month bank notes. C. Accounts payable. D. Common stock equity.

Description : Your firm has a philosophy that is analogous to the hedging (maturity matching) approach. Which of the following is the most appropriate non-spontaneous form for financing the excess seasonal current asset needs? ... credit. B. 6-month bank notes. C. Accounts payable. D. Common stock equity.

Last Answer : B. 6-month bank notes.

Buying a company's accounts receivable on a nonrecourse basis is known as _____. A. switch trading B. financing C. factoring D. funding E. free trade

Description : Buying a company's accounts receivable on a nonrecourse basis is known as _____. A. switch trading B. financing C. factoring D. funding E. free trade

Last Answer : C. factoring

________ set up for the purpose of financing, facilitating, and promoting foreign trade of India. A. Repco bank B. SBI C. EXIM bank D. HDFC

Description : ________ set up for the purpose of financing, facilitating, and promoting foreign trade of India. A. Repco bank B. SBI C. EXIM bank D. HDFC

Last Answer : C. EXIM bank

Capital structure decision should always aim at having debt component in order to a. Gain tax saying b. balance of capital structure c. gain control d. increase EPS

Description : Capital structure decision should always aim at having debt component in order to a. Gain tax saying b. balance of capital structure c. gain control d. increase EPS 

Last Answer : Answer:d.

What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d

Description : What happens to a company when its debt-to-assets ratio increases? a. Its credibility among creditors suffers. b. It envisages higher risk. c. Its short term interest rates increase. d. Its bond rating is reduced. e. c, d

Last Answer : e. c, d

Marketing management is ________. A. Managing the marketing process B. Monitoring the profitability of the company’s products and services C. Selecting target markets D. Developing marketing strategies to move the company forward E. The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

Description : Marketing management is ________. A. Managing the marketing process B. Monitoring the profitability of the company's products and services C. Selecting target markets D. Developing ... , keeping, and growing customers through creating, delivering, and communicating superior customer value

Last Answer : E. The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value

8. How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here. -Economics 10th

Description : 8. How does foreign trade lead to integration of markets across countries? Explain with an example other than those given here. -Economics 10th

Last Answer : Foreign trade has led to the integration of markets across the countries. Because of foreign trade, the producers are now able to compete and export their goods to the markets of other countries. ... not flooded with goods made in India but goods from all across the world at an affordable price.

How does foreign trade integrate that markets of different countries? -SST 10th

Description : How does foreign trade integrate that markets of different countries? -SST 10th

Last Answer : Integration of Foreign markets: . Producers reach beyond the domestic market. . Producers compete with markets located in other countries of the world . There is expansion of choice of goods beyond the domestic market. . Produces in the two countries closely compete against each other.

Foreign trade integrates the markets in different countries.' Support the statement with arguments. -SST 10th

Description : Foreign trade integrates the markets in different countries.' Support the statement with arguments. -SST 10th

Last Answer : Foreign trade integrates markets in different countries: 1. After the trade, goods travel between countries and goes beyond the domestic market. 2. The choices of good increases for the people ... who produce similar goods start to compete even though there is a huge distance between them.

How has foreign trade been integrating markets of different countries in the world ? Explain with examples. -SST 10th

Description : How has foreign trade been integrating markets of different countries in the world ? Explain with examples. -SST 10th

Last Answer : 1. Foreign trade creates an opportunity for the producers to reach beyond the domestic markets, i.e., markets of their own countries. 2. The competition is thus not just within the county, but also ... and lights in India, which led to a lowering of prices of these products in both the countries.

How does foreign trade lead to integration of markets across the countries? -SST 10th

Description : How does foreign trade lead to integration of markets across the countries? -SST 10th

Last Answer : Foreign trade is the main channel which connects the markets of various countries. Foreign trade lead to integration of markets across the countries as follows : (a) Creates opportunities for ... ) Producers of different countries compete with each other although they are thousands of miles away.

Explain with examples how the opening up of foreign trade results in connecting the markets in different countries. -SST 10th

Description : Explain with examples how the opening up of foreign trade results in connecting the markets in different countries. -SST 10th

Last Answer : Foreign trade provides opportunities for both producers and buyers to reach beyond the markets of their own countries. Goods travel from one country to another. Competition among producers of various ... and Chinese decoratiVe lights and bulbs. So, this provides an opportunity to expand business.

“Trade flourished and markets expanded in the 19th century,but there was a darker side to process.” Justify the statement. -SST 10th

Description : “Trade flourished and markets expanded in the 19th century,but there was a darker side to process.” Justify the statement. -SST 10th

Last Answer : (i) In many parts of the world, these developments meant loss of freedom and livelihoods. (ii) Late 19th century Europeans conquest brought about many destructive economic, social and ecological ... poverty for others; technological advances in Europe and new forms of coercion in Asia and Africa.

How does foreign trade integrate the markets of different countries? -SST 10th

Description : How does foreign trade integrate the markets of different countries? -SST 10th

Last Answer : (i) Through trade, goods can travel from one market to another. (ii) Choice of goods in the markets rises and prices become equal. (iii) Producers compete closely with each other

Which item out of the following is contained in the concurrent list? (1) Trade Unions (2) Agriculture (3) Tolls (4) Markets and Fairs

Description : Which item out of the following is contained in the concurrent list? (1) Trade Unions (2) Agriculture (3) Tolls (4) Markets and Fairs

Last Answer : (1) Trade Unions Explanation: The Concurrent List of Indian Constitution comprises subjects defined and enlisted under the List - III of the Seventh Schedule of the Constitution of India, which form the joint ... to make water a part of the concurrent list, moving it away from being a state subject.

The business in Stock Markets and other securities markets is regulated - (1) Securities and Exchange Board of India (2) Sole Trade and Exchange Bank of India (3) State and Exchange Bank of India (4) Stock and Exchange Bank of India

Description : The business in Stock Markets and other securities markets is regulated - (1) Securities and Exchange Board of India (2) Sole Trade and Exchange Bank of India (3) State and Exchange Bank of India (4) Stock and Exchange Bank of India

Last Answer : (1) Securities and Exchange Board of India Explanation: As per the Securities and Exchange Board Of India (SEBI) Act, 1992, SEBI is responsible for protecting the interests of investors in ... is the duty of SEBI to regulate the business in stock exchanges and any other securities markets.

Which of the following subjects does not figure in the Concurrent List of our Constitution? (1) Stock Exchanges and futures markets (2) Protection of wild animals and birds (3) Forests (4) Trade unions

Description : Which of the following subjects does not figure in the Concurrent List of our Constitution? (1) Stock Exchanges and futures markets (2) Protection of wild animals and birds (3) Forests (4) Trade unions

Last Answer : (1) Stock Exchanges and futures markets Explanation: The Concurrent List or List-Ill is a list of 47 items given in Part XI of the Constitution of India, concerned with relations between the Union and States. Stock exchanges and futures markets come under the Union List.

If the Japanese yen depreciates against other currencies in the exchange markets, this will: A. Have no effect on the Japanese balance of trade B. Tend to worsen the Japanese balance of trade C. Tend to improve the Japanese balance of trade D. None of the above

Description : If the Japanese yen depreciates against other currencies in the exchange markets, this will: A. Have no effect on the Japanese balance of trade B. Tend to worsen the Japanese balance of trade C. Tend to improve the Japanese balance of trade D. None of the above

Last Answer : A. Have no effect on the Japanese balance of trade

Which of the following subjects does not figure in the Concurrent List of our Constitution ? (1) Stock Exchanges and futures markets (2) Protection of wild animals and birds (3) Forests (4) Trade unions

Description : Which of the following subjects does not figure in the Concurrent List of our Constitution ? (1) Stock Exchanges and futures markets (2) Protection of wild animals and birds (3) Forests (4) Trade unions

Last Answer : Stock Exchanges and futures markets

The business in Stock Markets and other securities markets is regulated (1) Securities and Exchange Board of India (2) Sole Trade and Exchange Bank of India (3) State and Exchange Bank of India (4) Stock and Exchange Bank of India

Description : The business in Stock Markets and other securities markets is regulated (1) Securities and Exchange Board of India (2) Sole Trade and Exchange Bank of India (3) State and Exchange Bank of India (4) Stock and Exchange Bank of India

Last Answer : Securities and Exchange Board of India

Working Capital Financing?

Description : Working Capital Financing?

Last Answer : form_title=Working Capital Financing form_header=Stay competitive in a growing market by obtaining working capital financing for your business. Total financing amount needed?*= _Insert amount[50] Time frame needed?*= {Within ... would you rate your own credit?*= [] Poor [] Fair [] Good [] Excellent

Having defined working capital as current assets, it can be further classified according to . A. financing method and time B. rate of return and financing method C. time and rate of return D. components & time

Description : Having defined working capital as current assets, it can be further classified according to  . A. financing method and time B. rate of return and financing method C. time and rate of return D. components & time

Last Answer : D. components & time

In proper capital budgeting analysis we evaluate incremental cash flows. A. accounting B. operating C. before-tax D. financing

Description : In proper capital budgeting analysis we evaluate incremental cash flows. A. accounting B. operating C. before-tax D. financing

Last Answer : B. operating

Which sister organization of the World Bank helps private activity in developing countries by financing projects with long-term capital in the form of equity and loans ? 1. Asian Development Bank 2. IMF 3. International Development Association 4. International Finance Corporation 5. None of these

Description : Which sister organization of the World Bank helps private activity in developing countries by financing projects with long-term capital in the form of equity and loans ? 1. Asian ... . IMF 3. International Development Association 4. International Finance Corporation 5. None of these

Last Answer : International Finance Corporation

______ refers to financing of an enterprise which has overcome the highly risky stage and have recorded profit but cannot go public, thus needs financial support. (a)Venture capital b) development capital c) seed capital)

Description : ______ refers to financing of an enterprise which has overcome the highly risky stage and have recorded profit but cannot go public, thus needs financial support. (a)Venture capital b) development capital c) seed capital)

Last Answer : b) development capital

The early stage financing of venture capital includes _____ (a) start ups b) second round finance c) both).

Description : The early stage financing of venture capital includes _____ (a) start ups b) second round finance c) both).

Last Answer : c) both).

___is known as mezzanine capital.(a)Development financing b) expansion financing c) replacement finance)

Description : ___is known as mezzanine capital.(a)Development financing b) expansion financing c) replacement finance)

Last Answer : .(a)Development financing

______________ is a form of financing especially for funding high technology, high risk and perceived high reward projects A. Fixed capital. B. Current capital. C. Seed capital. D. Venture capital.

Description : ______________ is a form of financing especially for funding high technology, high risk and perceived high reward projects A. Fixed capital. B. Current capital. C. Seed capital. D. Venture capital.

Last Answer : D. Venture capital.