You passed this Milestone
23 questions were answered correctly.
0 question was answered incorrectly.
1
Which of the following describes equity securities, rather than debt
securities or derivatives?
They are best for hedging against changes in currency exchange rates.
They carry more risk than debt securities, but less than derivatives.
They offer a fixed rate of return.
They typically generate the highest returns of the three types of marketable
securities.
CONCEPT
Securities Management
2
Which of the following is an example of an operational risk for a
company that manufactures automobiles?
A state tax increase that makes buying and registering a car more expensive
Damage to completed cars held on a storage lot
Rising interest rates that affect the terms of car loans, thereby decreasing
demand
A national car rental agency backing out of a contract to buy a certain
volume of new cars
CONCEPT
Risk and Capital Budgeting
3
, Which of the following is a disadvantage of venture capital?
Venture capitalists only receive a return on their investment if the company
is eventually purchased for a large sum.
Companies that receive venture capital are prohibited from issuing an IPO
once they become successful.
Receiving venture capital can send a message to other investors that your
company is unlikely to succeed.
Venture capital investors may place restrictions on company operations, such
as setting salary caps.
CONCEPT
Venture Capital
4
Which of the following is a goal of working capital management?
To ensure liquidity while reducing opportunity costs
To manage long-term assets in a way that maximizes returns
To elongate the cash conversion cycle
To generate as much free working capital as possible
CONCEPT
Working Capital Financing
5
Consider the following data from a company's 95-day operating cycle:
Payable days: 8
Receivable days: 25
Inventory days: 70
What is the cash conversion cycle for this company?
23 questions were answered correctly.
0 question was answered incorrectly.
1
Which of the following describes equity securities, rather than debt
securities or derivatives?
They are best for hedging against changes in currency exchange rates.
They carry more risk than debt securities, but less than derivatives.
They offer a fixed rate of return.
They typically generate the highest returns of the three types of marketable
securities.
CONCEPT
Securities Management
2
Which of the following is an example of an operational risk for a
company that manufactures automobiles?
A state tax increase that makes buying and registering a car more expensive
Damage to completed cars held on a storage lot
Rising interest rates that affect the terms of car loans, thereby decreasing
demand
A national car rental agency backing out of a contract to buy a certain
volume of new cars
CONCEPT
Risk and Capital Budgeting
3
, Which of the following is a disadvantage of venture capital?
Venture capitalists only receive a return on their investment if the company
is eventually purchased for a large sum.
Companies that receive venture capital are prohibited from issuing an IPO
once they become successful.
Receiving venture capital can send a message to other investors that your
company is unlikely to succeed.
Venture capital investors may place restrictions on company operations, such
as setting salary caps.
CONCEPT
Venture Capital
4
Which of the following is a goal of working capital management?
To ensure liquidity while reducing opportunity costs
To manage long-term assets in a way that maximizes returns
To elongate the cash conversion cycle
To generate as much free working capital as possible
CONCEPT
Working Capital Financing
5
Consider the following data from a company's 95-day operating cycle:
Payable days: 8
Receivable days: 25
Inventory days: 70
What is the cash conversion cycle for this company?
