BUSM-20 final exam study guide Questions
With Solutions
The __________ is an accounting statement that reports the financial condition of a firm at a
specific point in time. the balance sheet
________ examine the data prepared by ________ and then make recommendations to top
management regarding strategies for improving the firm managers examine the date
prepared by accountants
Undercapitalization refers to the problem of the problem of: insufficient funds to start the
business
Which of the following activities is most likely to be performed by a financial manager?
Financial managers are responsible for paying the company bills at the appropriate time
and for collecting overdue payments to make sure the company does not lose too much money to
bad debts (people or firms that don't pay their bills) therefore, finance functions, such as buying
merchandise on credit( accounts payable) and collecting payment from customer ( accounts
receivable) are key components of the financial managers job
, BUSM-20 final exam study guide Questions
With Solutions
The overall objective of financial planning is to optimize the firms profitability and make
the best use of the money
The need for operating funds Never seems to end that's why sounds management is
essential to all businesses. and like our personal financial needs, the capital needs of a business
change overtime. Remember the example of Parsley Patch to see why small businesses financial
requirements can shift considerably. Virtually, all organization have operational needs for which
they need funds. Key areas include (1) managing day- by day needs of the business. (2)
Controlling credit operations (3) Acquiring needed inventory, (4) Making Capital Expedentures
Corporations benefit from securities markets primarily by Corporations make money on
the sale of their securities(stock) only once when they sell it on the primary market
Private investors benefit from securities markets primarily by The secondary market
handles the trading of these securities between investors, with the proceeds of the sale going to
the investor selling the stock. Not to the corporation whose stock is sold
Trading in newly issued securities takes place in the Primary Market
With Solutions
The __________ is an accounting statement that reports the financial condition of a firm at a
specific point in time. the balance sheet
________ examine the data prepared by ________ and then make recommendations to top
management regarding strategies for improving the firm managers examine the date
prepared by accountants
Undercapitalization refers to the problem of the problem of: insufficient funds to start the
business
Which of the following activities is most likely to be performed by a financial manager?
Financial managers are responsible for paying the company bills at the appropriate time
and for collecting overdue payments to make sure the company does not lose too much money to
bad debts (people or firms that don't pay their bills) therefore, finance functions, such as buying
merchandise on credit( accounts payable) and collecting payment from customer ( accounts
receivable) are key components of the financial managers job
, BUSM-20 final exam study guide Questions
With Solutions
The overall objective of financial planning is to optimize the firms profitability and make
the best use of the money
The need for operating funds Never seems to end that's why sounds management is
essential to all businesses. and like our personal financial needs, the capital needs of a business
change overtime. Remember the example of Parsley Patch to see why small businesses financial
requirements can shift considerably. Virtually, all organization have operational needs for which
they need funds. Key areas include (1) managing day- by day needs of the business. (2)
Controlling credit operations (3) Acquiring needed inventory, (4) Making Capital Expedentures
Corporations benefit from securities markets primarily by Corporations make money on
the sale of their securities(stock) only once when they sell it on the primary market
Private investors benefit from securities markets primarily by The secondary market
handles the trading of these securities between investors, with the proceeds of the sale going to
the investor selling the stock. Not to the corporation whose stock is sold
Trading in newly issued securities takes place in the Primary Market
