Business Finance and Inventory Management

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Questions and Answers

Which type of lender provides funds in exchange for collateral, usually for jewelry?

  • Pawnshops (correct)
  • Banks
  • Lending Companies
  • Credit Cooperatives

What are debt investments where an investor loans money to an entity which borrows the funds?

  • Bonds (correct)
  • Savings account
  • Investments
  • Certificate of Deposits (CD)

What pertains to the ability of the company to access funds?

  • Flexibility (correct)
  • Risk
  • Nominal Interest Rate
  • Restrictions

What type of investment is considered low-risk and can earn passive income?

<p>Savings account (C)</p> Signup and view all the answers

Which type of investment involves pooling money from investors with diverse portfolios?

<p>Mutual Funds (D)</p> Signup and view all the answers

What type of investment is typically open to accredited investors and employs a wide range of investment strategies?

<p>Hedge Funds (A)</p> Signup and view all the answers

Which institution provides several loan products catering to different types of needs?

<p>Banks (D)</p> Signup and view all the answers

What is expressed in decimal and is a type of interest rate?

<p>Nominal Interest Rate (C)</p> Signup and view all the answers

What means that the sum of money is worth more now than the same sum of money in the future?

<p>Time Value Money (C)</p> Signup and view all the answers

What do some lenders like banks may require for as long as the loans remain outstanding?

<p>Restriction (C)</p> Signup and view all the answers

What is the difference between firm's current assets and current liabilities referred to as?

<p>Net Working Capital (B)</p> Signup and view all the answers

What does the ABC Inventory System divide the firm's inventory into?

<p>A, B, and C groups based on value and frequency of use (C)</p> Signup and view all the answers

What does Just-In-Time aim to minimize for the firm?

<p>Investments in inventory (A)</p> Signup and view all the answers

What does Credit Scoring apply statistically derived weights to in order to predict credit repayment?

<p>Credit applicant's scores on key financial and credit characteristics (B)</p> Signup and view all the answers

What does Mail Float refer to?

<p>The time delay between when payment is placed in the mail and when it is received (B)</p> Signup and view all the answers

What are Relevant Costs in decision-making?

<p>Differential and future costs that can produce an incremental increase or decrease on profit (C)</p> Signup and view all the answers

What does the decision 'Drop or retain a segment' refer to in manufacturing companies?

<p>Deciding whether to continue or discontinue a product or service line (B)</p> Signup and view all the answers

What is Limited Resources used for in decision-making?

<p>Prioritizing products based on contribution margin per unit of scarce resource (B)</p> Signup and view all the answers

What does Just-In-Time aim to minimize for the firm?

<p>Investments in inventory (B)</p> Signup and view all the answers

What does Suppliers Credit refer to?

<p>The extension of payment due date by the suppliers (A)</p> Signup and view all the answers

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