Business 1000 Chapter 15 questions
well answered to pass
Unlike inventories and other short-term assets, __________ are not normally sold or converted to cash. -
correct answer ✔✔capital expenditures
Which of the following risk management strategies describes when losses are manageable and
predictable, and a firm decides to cover them out of company funds? - correct answer ✔✔Risk retention
_________ involve the possibility of gain or loss. - correct answer ✔✔Speculative risks
______ managers are responsible for planning and overseeing the financial resources of a firm. - correct
answer ✔✔Financial
Ensuring that a business always has enough funds on hand to purchase the materials and human
resources it needs to produce goods and services is called ______________. - correct answer ✔✔cash-
flow management
A _______ is an order to a broker to buy a certain security only if its price is less than or equal to a given
limit. - correct answer ✔✔limit order
______ is the purchased right to sell a particular stock at a certain price until a specified date. - correct
answer ✔✔A put option
Which of the following risk management strategies involves ceasing participation in or refusing to
participate in ventures that carry any risk? - correct answer ✔✔Risk avoidance
The Toronto Stock Exchange is an example of a(n) ______. - correct answer ✔✔secondary securities
market
well answered to pass
Unlike inventories and other short-term assets, __________ are not normally sold or converted to cash. -
correct answer ✔✔capital expenditures
Which of the following risk management strategies describes when losses are manageable and
predictable, and a firm decides to cover them out of company funds? - correct answer ✔✔Risk retention
_________ involve the possibility of gain or loss. - correct answer ✔✔Speculative risks
______ managers are responsible for planning and overseeing the financial resources of a firm. - correct
answer ✔✔Financial
Ensuring that a business always has enough funds on hand to purchase the materials and human
resources it needs to produce goods and services is called ______________. - correct answer ✔✔cash-
flow management
A _______ is an order to a broker to buy a certain security only if its price is less than or equal to a given
limit. - correct answer ✔✔limit order
______ is the purchased right to sell a particular stock at a certain price until a specified date. - correct
answer ✔✔A put option
Which of the following risk management strategies involves ceasing participation in or refusing to
participate in ventures that carry any risk? - correct answer ✔✔Risk avoidance
The Toronto Stock Exchange is an example of a(n) ______. - correct answer ✔✔secondary securities
market
