Business Misc Sophia bus 101 unit 4 milestone 100% PASS

A well-known corporation planned to expand one of their product lines and needed financing. The corporation wanted financing that could be quickly arranged. All information about the financing needed to be kept confidential so their competitors would not find out about the expansion. Which of the following types of financing is the company likely to use? Corporate bond Stock offering Venture capitalist Long term loan CONCEPT Debt Financing 2 Which of the following is true about short term financing? The need for short term financing by a business signals that the business is in distress. 7/3/2020 Sophia :: Welcome A lending institution usually requires a business to repay a short term loan within a year. Short term financing often requires a business to provide collateral to obtain the loan. Short term financing tends to be a risky option for financial institutions. CONCEPT Trade Credit and Promissory Notes 3 Anita was trying to build her investment portfolio. She was willing to assume more risk if it meant she would earn more money.  Which type of investment below will Anita likely be interested in making? Buying several certificates of deposit Buying a government bond Buying shares of an unproven stock Buying a corporate bond CONCEPT Investors and Private Placement 4 Which of the following can investors use to evaluate a company's potential earning power? Earnings per share Asset to liabilities ratio Debt to owner's equity ratio 7/3/2020 Sophia :: Welcome Current ratio CONCEPT Equity Financing 5 Select the item below that would NOT be included in the M2 money supply. Savings account Common stock Certificate of deposit Cash CONCEPT