When a credit-worthy business takes on an unsecured, short term loan, which kind of interest rate below
will it likely be charged?
Prime percentage rate plus a percent
Prime percentage rate
Annual percentage rate
Di
...
When a credit-worthy business takes on an unsecured, short term loan, which kind of interest rate below
will it likely be charged?
Prime percentage rate plus a percent
Prime percentage rate
Annual percentage rate
Discount rate
CONCEPT
Trade Credit and Promissory Notes
2
Which of the following is true regarding risk management?
Large and small companies need to manage issues with speculative risks.
Large companies are more likely to require risk management plans.
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Speculative risks are usually associated with natural disasters.
Pure risk typically results in potential gains for an organization.
CONCEPT
Risk Management
3
A well-known corporation planned to expand one of their product lines and needed financing. The corporation
wanted financing that could be quickly arranged. All information about the financing needed to be kept
confidential so their competitors would not find out about the expansion.
Which of the following types of financing is the company likely to use?
Stock offering
Long term loan
Corporate bond
Venture capitalist
CONCEPT
Debt Financing
4
Which of the following is true about a budget?
It is used to balance financial priorities with organizational goals.
It is used to monitor the costs of potential business risks.
It is shared with investors to verify the financial health of a business.
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It is used to compare the assets of a business to its liabilities.
CONCEPT
Role of Financial Management
5
Select the item below that would NOT be included in the M2 money supply.
Savings account
Common stock
Certificate of deposit
Cash
CONCEPT
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