Exam 3 (Final Exam)
FIN 3302
• Question 1
1 out of 1 points
Two advantages of
financing with
current liabilities
are flexibility and
lower interest cost.
Answer
Selected Answer: a.
True
Correct Answer: a.
True
• Question 2
1 out of 1 points
To ensure that a
borrower is not
using short-term
bank credit to
finance a part of
its permanent
needs for funds,
banks often
require borrowers
to clean up their
short-term loans
for a 30 - 45 day
period during the
year.
Answer
Selected Answer: a.
True
Correct Answer: a.
True
• Question 3
2 out of 2 points
Benkart's Tire
Store has fixed
, costs of $180,000.
Tires sell for $75
each and have a
unit variable cost
of $30. What is
Benkart's break-
even point in
units?
Answer
Selected Answer: a.
4,000
Correct Answer: a.
4,000
• Question 4
2 out of 2 points
The break-even
point in sales
dollars is
convenient if:
Answer
Selected Answer: b.
the firm deals with more than one product.
Correct Answer: b.
the firm deals with more than one product.
• Question 5
2 out of 2 points
Dividends
generally:
Answer
Selected Answer: d.
are more stable than earnings.
Correct Answer: d.
are more stable than earnings.
• Question 6
1 out of 1 points
Which of the
following is most
likely to be a
, temporary source
of financing?
Answer
Selected Answer: a.
commercial paper
Correct Answer: a.
commercial paper
• Question 7
1 out of 1 points
If a firm relies on
short-term debt or
current liabilities
in financing its
asset investments,
and all other
things remain the
same, what can be
said about the
firm's liquidity?
Answer
Selected Answer: b.
The firm will be relatively less liquid.
Correct Answer: b.
The firm will be relatively less liquid.
• Question 8
1 out of 1 points
Trade credit is an
example of which
of the following
sources of
financing?
Answer
Selected Answer: a.
spontaneous
Correct Answer: a.
spontaneous
• Question 9
3 out of 3 points
FIN 3302
• Question 1
1 out of 1 points
Two advantages of
financing with
current liabilities
are flexibility and
lower interest cost.
Answer
Selected Answer: a.
True
Correct Answer: a.
True
• Question 2
1 out of 1 points
To ensure that a
borrower is not
using short-term
bank credit to
finance a part of
its permanent
needs for funds,
banks often
require borrowers
to clean up their
short-term loans
for a 30 - 45 day
period during the
year.
Answer
Selected Answer: a.
True
Correct Answer: a.
True
• Question 3
2 out of 2 points
Benkart's Tire
Store has fixed
, costs of $180,000.
Tires sell for $75
each and have a
unit variable cost
of $30. What is
Benkart's break-
even point in
units?
Answer
Selected Answer: a.
4,000
Correct Answer: a.
4,000
• Question 4
2 out of 2 points
The break-even
point in sales
dollars is
convenient if:
Answer
Selected Answer: b.
the firm deals with more than one product.
Correct Answer: b.
the firm deals with more than one product.
• Question 5
2 out of 2 points
Dividends
generally:
Answer
Selected Answer: d.
are more stable than earnings.
Correct Answer: d.
are more stable than earnings.
• Question 6
1 out of 1 points
Which of the
following is most
likely to be a
, temporary source
of financing?
Answer
Selected Answer: a.
commercial paper
Correct Answer: a.
commercial paper
• Question 7
1 out of 1 points
If a firm relies on
short-term debt or
current liabilities
in financing its
asset investments,
and all other
things remain the
same, what can be
said about the
firm's liquidity?
Answer
Selected Answer: b.
The firm will be relatively less liquid.
Correct Answer: b.
The firm will be relatively less liquid.
• Question 8
1 out of 1 points
Trade credit is an
example of which
of the following
sources of
financing?
Answer
Selected Answer: a.
spontaneous
Correct Answer: a.
spontaneous
• Question 9
3 out of 3 points
