BUSI 530 QUIZ 4 / BUSI530 QUIZ 4 (NEWEST - 2021) | VERIFIED, 100 % CORRECT | LIBERTY UNIVERSITY

 BUSI 530 QUIZ 4
Question 1

2 out of 2 points



When financial managers take action to minimize the carrying
costs of current assets, they:
Answer

Selected Answer: may increase costs due to shortages.

 Question 2

2 out of 2 points



As for the preparation of cash budgets, capital expenditures are:
Answer

Selected Answer: included as sources of operating cash.

 Question 3

2 out of 2 points



Which of the following statements about total capital requirement is
least likely to be correct for a profitable firm?
Answer

,Selected Answer: The trend is often upward-sloping.

 Question 4

2 out of 2 points



Field warehousing can be an important source of:
Answer

Selected short-term financing with low risk to the
Answer: lender.

 Question 5

2 out of 2 points



Which of the following is correct for a firm that reduces its
accounts receivable balance from the previous quarter?
Answer

Selected Answer: Collections exceeded sales.

 Question 6

2 out of 2 points



In "field warehousing" the inventory is kept by the:
Answer

, Selected Answer: Independent warehousing company

 Question 7

2 out of 2 points



Which of the following is least likely to be correct for a firm that
repeatedly stretches its payables?
Answer

Selected The firm may receive more favorable status
Answer: from suppliers due to its volume of purchases.

 Question 8

2 out of 2 points



What strategy regarding long- versus short-term financing is not
being followed if managers resort to short-term investing during
downturns in the business cycle?
Answer

Selected Answer: Both b and c above

 Question 9

2 out of 2 points