BUS 100 Introduction to Business Unit 4 Challenges Sophia Course Click below Link for Answer https://www.sobtell.com/q/tutorial/default/206997-bus-100-introduction-to-business-unit-4challenges https://www.sobtell.com/q/tutorial/default/206997-bus-100-introduction-to-business-unit-4challenges
Challenge 1 Which of the following is NOT something proper financial management can ensure? a.)
An improved credit rating
b.)
The availability of sufficient financing
c.)
The availability of money for immediate cash flow problems
d.)
Effectively planning and controlling spending An example of an expense related to long term financing is __________. a.)
paying wages to farmworkers
b.)
buying farmland to manage more cows
c.)
paying an agency to create a marketing campaign
d.)
buying supplies to maintain farm equipment
Which of the following expenses illustrates short term financing? a.) Paying utilities for the farm office
b.)
Purchasing a new tractor for the farm c.) Paying for a new creamery production facility
d.)
Purchasing additional land and buildings Which of the following is a characteristic of managerial accounting? a.)
Used externally by people like stockholders, creditors, and the government
b.)
Used to set performance goals
c.)
Used to prepare income statements and balance sheets
d.)
Used to file annual reports Which of the following is an example of managerial accounting? a.)
Develops the statement of cash flows
b.)
Provides reports to internal managers
c.)
Creates reports for government agencies
d.)
Prepares the balance sheet Which of the following is an example of financial accounting? a.)
Setting quarterly performance goals
b.)
Predicting internal forecasts for future sales
c.)
Creating budgets for company departments
d.)
Filing annual financial reports Which of the following is an example of risk transfer? a.)
Bruce and Linda stop any and all practices that are risky enough to result in a loss to the business.
b.)
Bruce and Linda purchase an insurance policy so that the risk associated with a fire would be assumed by a third party.
c.)
Bruce and Linda take on a new business venture even though they could lose some of their current business relationships.
d.)
Bruce and Linda evaluate the potential losses they could incur and take precautionary actions to reduce the risk involved.
Which of the following is an example of risk avoidance? a.)
A business knows it must take a risk and assumes the costs involved with the activity.
b.)
A business engages in a different activity so that it does not incur any risk.
c.)
A business pays another company to take the risk involved with performing a certain activity.
d.)
A business identifies risks that could occur and takes steps to minimize their negative impact. Which of the following is an example of risk control? a.)
Stella and Kelli decide to pay a third party to assume a risk that could occur to their production facility when they expand their operations.
b.)
Stella and Kelli decide to enter an exclusive relationship since it provides more security and safety than trying to grow the business on their own.
c.)
Stella and Kelli decide to enter the exclusive relationship knowing they will lose their current boutique business relationships.
d.)
Stella and Kelli decide the new venture is too risky and opt not to form the exclusive relationship. Which of the following reports will the Securities and Exchange Commission require companies to disclose to investors when considering the health of a company? a.)
Balance sheet
b.)
Profit and loss statement
c.)
Income statement
d.)
Statement of cash flows Which items would be considered liabilities in the balance sheet? a.)
Land and Inventory
b.)
Investments and Machinery
c.)
Cash and Revenues
d.)
Wages and Taxes Payable Which of the following items would be included in an income statement? a.)
Long-term debt amounts
b.)
Owner's equity value
c.)
Money spent investing in long-term bonds
d.)
Costs of goods sold The __________ is used to evaluate how likely a company is to pay off its debts. a.)
capital budget
b.)
current ratio
c.)
cash budget
d.)
debt to owner's equity ratio A __________ is for keeping track of weekly performance. a.)
current budget
b.)
department budget
c.)
project budget
d.)
cash budget Which of the following metrics shows that a company does not rely heavily on debt to run its business?
a.)
Cash budget
b.)
Capital budget
c.)
Debt to owner's equity ratio
d.)
Current ratio Milk makes poor currency because it can't be transported for long distances without being refrigerated. Which of the following features of money does milk thus lack? a.)
Durability
b.)
Stability
c.)
Portability
d.)
Divisibility Eggs make poor currency because they cannot be changed in order to make smaller transactions. Which of the following features of money do eggs thus lack? a.)
Divisibility
b.)
Stability
c.)
Portability
d.)
Durability Cows make poor currency because they eventually die. Which of the following features of money do cows thus lack? a.)
Durability
b.)
Portability
c.)
Stability
d.)
Divisibility Which of the following statements about the Federal Reserve is true? a.)
The Federal Reserve can suggest, but not require, how much money a bank must hold in reserve.
b.)
The Federal Reserve aims to make it difficult to borrow money.
c.)
The Federal Reserve oversees the printing of money and issues bonds to raise capital.
d.)
The Federal Reserve provides services to large commercial banks, but not to small local banks. Stricter _________ cause banks to hold more money, which means the banks have less money to lend to consumers and businesses. a.)
interest rates
b.)
reserve requirements
c.)
money supply guidelines
d.)
discount rate controls Higher ________ mean a bank has to pay a higher rate on the money it borrows from the Federal Reserve. a.)
money supply needs
b.)
discount rate controls
c.)
reserve requirements
d.)
inflation limits Which type of bank provides a vote on how the bank is run to borrowers and depositors? a.)
Credit union
b.)
Commercial bank
c.)
Mutual savings bank
d.)
Savings and loan association Which type of profit-oriented bank provides services, such as accepting deposits and making loans for individuals and businesses? a.)
Mutual savings bank
b.)
Savings and loan association
c.)
Credit union
d.)
Commercial bank Which type of non-profit institution requires that a person must meet certain guidelines to become a member before they can take advantage of the institution's services?
a.)
Credit union b.) Mutual savings bank
c.)
Non-deposit institution d.) Savings and loan association Challenge 2 Which of the following statements accurately describes short term financing options? a.)
The lender usually charges the borrower a discount rate of interest.
b.)
The short term financing options are considered a type of secured financing.
c.)
The short term financing options must be repaid within a one year period.
d.)
The need for short term financing indicates that a business is in financial distress. Which of the following statements accurately describes short term financing options? a.)
The short term financing options are more difficult to obtain than long term options.
b.)
The amount a business needs to borrow is small compared to a long term loan.
c.)
The short repayment period is less risky for a business as the borrower.
d.)
Short term financing would require a business to pay the money back in up to five years. Which of the following statements accurately describes short term financing options? a.)
Short term financing would require a business to provide collateral.
b.)
A business will likely be charged interest if they take out a promissory note.
c.)
A business will likely be charged a higher interest rate on its loans than an individual borrowing money.
d.)
Short term financing is easier to get than long term financing because it is a necessary aspect of doing business. Which of the following is an example of secured short term financing? a.)
Financing a loan for three years to purchase new equipment
b.)
Signing a note with a lender that allows the farm to pay the money back in 180 days
c.)
Authorizing an agreement with a supplier to pay them in 120 days for purchased items
d.)
Using the current inventory of milk and cows the farm has on hand to get the loan Which of the following is an example of how a company uses some of its assets to borrow money?
a.)
Using the money the restaurant expects to receive from customers on sales to get a loan
b.)
Using collateral to open a revolving line of credit
c.)
Financing a loan for four years to purchase new kitchen equipment
d.)
Making an agreement with a supplier to purchase items and pay them in 90 days Which of the following items use collateral to obtain short term financing? a.)
Trade credit and Line of credit
b.)
Trade credit and Loan secured by inventory
c.)
Line of credit and Factoring accounts receivable
d.)
Factoring accounts receivable and Loan secured by inventory Which of the following describes a long term loan?
a.)
Higher costs to administer
b.)
Ranges from 10-30 years for repayment
c.)
Higher number of people involved
d.)
Limits public disclosure of financial data Which of the following is an example of debt financing? a.)
A farm owner holds an IOU until the company repays the IOU plus interest.
b.)
A farm owner decides to borrow money to fund business operations.
c.)
A farm owner must make the final payment for a loan on June 1, 2020.
d.)
A farm owner owns a portion of a company by purchasing 500 shares. Which of the following describes a bond? a.)
An instrument that pays the buyer a set amount plus interest at the end of a defined term
b.)
A process for taking on a loan and agreeing to pay back the borrowed funds
c.)
A specific period when the payout will occur for a bond
d.)
A group that represents the owners of a bond
Which of the following scenarios describes a capital gain? a.)
A company forced an investor to pay back her 200 shares of this item.
b.)
An investor who owned this item from a company has limited voting rights on major company issues.
c.)
A company paid an investor $.50 per share from its earnings each quarter.
d.)
An investor earned this when he sold shares at a higher price than he purchased the shares. What does a company keep from making a profit, rather than sharing it with its stockholders? a.)
Dividends
b.)
Earnings per share
c.)
Capital gains
d.)
Retained earnings Which of the following relates to a venture capitalist? a.)
Willing to take on the most risk with an investment
b.)
Passionate about a project
c.)
Manages the business in which it invests
d.)
Usually provides funding for 10 years or less Which of the following statements is true regarding angel investors? a.)
An angel investor is more likely to be a single individual.
b.)
An angel investor does not expect a share of ownership for investing funds.
c.)
An angel investor is interested in funding the growth of a business
d.)
An angel investor usually charges management fees and interest on funding loans. Compared to a venture capitalist, an angel investor is ____________. a.)
interested in managing business functions
b.)
usually a group of people
c.)
willing to provide initial funding
d.)

unwilling to take risk