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BUS 100 - Introduction to Business Milestone 4 Test (Score 20/20)

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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. 7/26/2020 Sophia :: Welcome https://www.sophia.org/spcc/introduction-to-business-2/milestone_take_feedbacks/5185784 2/10 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. 7/26/2020 Sophia :: Welcome https://www.sophia.org/spcc/introduction-to-business-2/milestone_take_feedbacks/5185784 3/10 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 [Show More]

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