Buss 1 – Planning and Financing a Business – Exam 1 || With Questions & Answers (Graded A+)
5 keer bekeken 0 keer verkocht
Vak
Business finance
Instelling
Business Finance
Buss 1 – Planning and Financing a Business – Exam 1 || With Questions & Answers (Graded A+)
Buss 1 – Planning and Financing a Business – Exam 1 || With Questions & Answers (Graded A+)
Finance is the function of acquiring and management of ______. - ANSWER - funds
Is it more common fo...
, Buss 1 – Planning and Financing a
Business – Exam 1 || With Questions &
Answers (Graded A+)
Finance is the function of acquiring and management of ______. - ANSWER - funds
Is it more common for a firm to fail due to lack of sales or poor financial
management? - ANSWER - poor financial management
The three steps in the financial planning process are to forecast the firm's short- and
long-term needs, develop budgets, and ______. - ANSWER - establish financial
controls
Short-term forecasts generally cover up to a ______. - ANSWER - year
When a company allocates the use of specific resources throughout the firm based
on a financial plan indicating management's expectations, then the company is using
a(n) as the basis for making decisions. - ANSWER - Blank 1: budget
In any business, funds come into and go out of a business. What business function
acquires funds for the firm and then manages those funds on a day-to-day basis? -
ANSWER - finance
When a firm periodically compares its actual revenues, costs, and expenses with its
budget, it is engaging in control. - ANSWER - Blank 1: financial
What are the three most common reasons firms fail financially? - ANSWER -
undercapitalization
inadequate expense control
poor control over cash flow
Needs for operating funds include ______. (Select all that apply) - ANSWER -
making capital expenditures
acquiring needed inventory
controlling credit operations
Select the steps in financial planning. (Select all that apply) - ANSWER - develop
budgets
establish financial controls
forecasting short term needs
A(n) ______ forecast predicts revenues, costs, and expenses for a period of one
year or less. - ANSWER - short-term
The value of money is the idea that money in your possession today is worth more
than money that will be in your possession in the future. - ANSWER - Blank 1: time
, A(n) is a financial plan that sets forth management's expectations and, on the basis
of those expectations, allocates the use of specific resources throughout the system.
- ANSWER - Blank 1: budget
Accepting credit cards can be useful to small businesses by - ANSWER -
In financial planning, what is the process in which a firm periodically compares its
actual revenues, costs, and expenses, with its budget? - ANSWER - Credit cards
provide a readily available line of credit that can save time. Credit cards are
extremely costly and risky. Interest rates are high.
What inventory management procedure helps a firm to control inventory costs? -
ANSWER - implementing a just-in-time inventory control method
Funding day-to-day operations, acquiring needed inventory, and making capital
expenditures are all needs for funds in an organization. - ANSWER - Blank 1:
operating, operational, or operation
Major investments in either tangible long-term assets such as land, or intangible
assets such as patents are considered to be ______ expenditures. - ANSWER -
capital
Place the three steps in the financial planning process in order from beginning to end
with the first step at the top.
Instructions - ANSWER - 1. Forecasting the firm's financial needs
2. developing budgets
3. establishing financial controls
Money is considered to have a time value because ______. - ANSWER - money has
more value in your possession today than at a later point in the future
A firm raising funds through various forms of borrowing with the intent to pay it back
is using financing. - ANSWER - Blank 1: debt
During tough economic times, customers are happy when firms extend for
purchases. - ANSWER - Blank 1: credit
Careful control of a firm's costs allows it to maintain correct levels of stock and
product. - ANSWER - Blank 1: inventory
A firm that makes a major investment in a long-term asset has made a(n)
expenditure. - ANSWER - Blank 1: capital
Short-term financing is more important to a small business than long-term financing
because ______. - ANSWER - small businesses are more concerned with funding
day to day operations
The three steps in the financial planning process are to forecast the firm's short- and
long-term needs, develop budgets, and ______. .. - ANSWER - establish financial
controls
Voordelen van het kopen van samenvattingen bij Stuvia op een rij:
√ Verzekerd van kwaliteit door reviews
Stuvia-klanten hebben meer dan 700.000 samenvattingen beoordeeld. Zo weet je zeker dat je de beste documenten koopt!
Snel en makkelijk kopen
Je betaalt supersnel en eenmalig met iDeal, Bancontact of creditcard voor de samenvatting. Zonder lidmaatschap.
Focus op de essentie
Samenvattingen worden geschreven voor en door anderen. Daarom zijn de samenvattingen altijd betrouwbaar en actueel. Zo kom je snel tot de kern!
Veelgestelde vragen
Wat krijg ik als ik dit document koop?
Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.
Tevredenheidsgarantie: hoe werkt dat?
Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.
Van wie koop ik deze samenvatting?
Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper conceptialresearchers. Stuvia faciliteert de betaling aan de verkoper.
Zit ik meteen vast aan een abonnement?
Nee, je koopt alleen deze samenvatting voor €11,04. Je zit daarna nergens aan vast.
