MIE 201 Final Exam correctly answered rated A+ 2023/2024

MIE 201 Final ExamFinancial Management - correct answer Planning for a firm's money needs and managing the allocation and spending of funds Risk/Return Trade Off - correct answer The balance of potential risks against potential rewards Financial Plan - correct answer A document that outlines the funds needed for a certain period of time, along with the sources and intended uses of those funds Accounts Receivable - correct answer Amounts that are currently owed to a firm Accounts Payable - correct answer Amounts that a firm currently owes to other parties Budget - correct answer A planning and control tool that reflects expected revenues, operating expenses, and cash receipts and outlays Financial Control - correct answer The process of analyzing and adjusting that basic financial plan to correct for deviations from forecasted events Hedging - correct answer Protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices Zero-based Budgeting - correct answer A budgeting approach in which each department starts from zero every year and must justify every item in the budget, rather than simply adjusting the previous year's budget amounts Start-up Budget - correct answer A budget that identifies the money a new company will need to spend to launch operations Operating Budget - correct answer Also known as the master budget, a budget that identifies all sources of revenue and coordinates the spending of those funds throughout the coming year Capital Budget - correct answer A budget that outlines expenditures for real estate, new facilities, major equipment, and other capital investments Capital Investments - correct answer Money paid to acquire something of permanent value in a business Project Budget - correct answer A budget that identifies the costs needed to accomplish a particular project Debt Financing - correct answer Arranging funding by borrowing money Equity Financing - correct answer Arranging funding by selling ownership shares in the company, publicly or privately Short-term Financing - correct answer Financing used to cover current expenses (usually repaid within a year) Long-term Financing - correct answer Financing used to cover long-term expenses such as assets (usually repaid over a period of more than one year) Cost of Capital - correct answer The average rate of interest a firm pays on its combination of debt and equity Prime Interest Rate - correct answer The lowest rate of interest that banks charge for short-term loans to their most creditworthy customers Leverage - correct answer The technique of increasing the rate of return of an investment by financing it with borrowed funds Capital Structure - correct answer A firm's mix of debt and equity financing