Liberty BUSI 320 Chapter 1 Reading Assignment Answers Complete Solutions
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Institutional investors are influential because of their ability to replace poorly performing boards of directors.
Which of the following is not a phenomenon that has influenced the importance of internationalization by mangers
LLCs can be taxed as sole proprietorships, partnerships, corporations, or S corporations, depending upon what?
There are four primary forms of organizations.
The goal of shareholders wealth maximization can be consistent with the concern of social responsibility if management adopts policies that values in the market.
Management, being representative of all the owners, is in the agency position of making decisions that are in the best interest of the firm’s:
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According to the text, if there is one talent essential to the financial manager it is the ability to ______.
Agency theory states that management should make decisions that are in the best interest of the firm’s:
An aggressive firm utilizing short-term financing may be vulnerable to
An aggressive firm utilizing short term financing may be vulnerable to
An alternative to the systems approach for determining a firm’s financial needs is the _____ method.
As a rule, an aggressive, risk-orientated firm will use _______ financing.
As a rule, during “tight money” periods:
As a rule, interest rates on short term debt are _______ interest rates on long term debt.
Assume current assets and current liabilities change at the same rate as sales. Accordingly, if sales increase by 15%
Assume that current assets and current liabilities change at the same rate as changes in sales. Therefore, if sales increase by 10%, then
Capital market securities include all of the following except
Cash flow is determined by
Cash payments may be necessary for all of the following except
A firm anticipates a 30% growth in sales this coming year. Last year the firm had the following figures expressed as a percentage of sales: cash at 10%, accounts receivable at 25%, and inventory at 20%. Using the percentage-of-sales forecasting method, what percentage growth in current liabilities is needed to sustain the growth in sales?
A firm anticipates cash receipts for February of $20,000 and for March of $30,000. Cash payments are expected to be $5,000 in February and $7,000 in March. The cash balance at the beginning of February was $6,000, which is the level the fir, wishes to maintain. At the beginning of February, the firm has a $21,000 loan balance on a line of credit with a local bank. Based on the cash budget, how much can the firm repay in February and March?
A firm determines that sales will rise from $500,000 to $750,000 next year. The relationship of variable assets to sales is 50% and the relationship of variable liabilities to sales is 20%. The firm has a 10% profit margin and a divided payout ratio of 30%. What is the level of new funds required?
The firm has projected sales of $30,000 in June, $25,000 in July, and $20,000 in August, 20% of sales are collected in the month of the sales and 80% are collected in the month following the sale. What are cash receipts in August?