BCOR 2204 Finance Quiz 1 (correct answers)

financial services correct answers concerned with design and delivery of advice and financial products to individuals, businesses, and governments managerial finance involves... correct answers tasks such as budgeting, financial forecasting, cash management, and funds procurement profit maximization as the "goal" of the firm is BAD because... correct answers profit maximization DOES NOT consider risk Pro-active ethics program is expected to result in... correct answers a positive corporate image and increased respect, a reduction in risk, and enhanced cash flow resulting in an increase in share price The Board of Directors is responsible for... correct answers approving strategic goals and plans The agency problem may result from a manager's concerns about... correct answers job security The profitability ratios are... correct answers primarily used as measures of return current ratios are usually between correct answers 1 and 2 -high current ratio: a lot of money Inventory Turnover Ratio may... correct answers indicate firm is experiencing stockout and lost sales Inventory Turnover Ratio measures... correct answers the activity, or liquidity, of a firm's stock of goods Total Asset Turnover indicates... correct answers the efficiency with which the firm uses its assets to generate sales Example: Gross profit margin is inferior to the industry standard. This may have resulted from... correct answers the high cost of goods sold GPM: sales-COGS What is a cash inflow? correct answers a decrease in accounts receivable An external sales forecast is based on ________. correct answers the relationships between a firm's sales and certain key economic indicators such as GDP and consumer confidence The key input to the short-term financial planning process is... correct answers the sales forecast The key input to any cash budget is... correct answers the sales forecast