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</p> Signup and view all the answers

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

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

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

    <p>Banks</p> Signup and view all the answers

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

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

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

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

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

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

    What does Suppliers Credit refer to?

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

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