Semester 2 Final (Ch. 1-6, 17-20, App. D, 13-16, 7-11) Part 2

Front

Which of the following is a key difference between debt financing and equity financing? Options: Debt financing involves issuing shares of stock, while equity financing involves borrowing money. Debt financing requires regular interest payments, whereas equity financing does not require regular dividend payments. Equity holders have a fixed claim on assets, while debt holders have a residual claim. Debt financing dilutes ownership, while equity financing does not.

Back

Debt financing requires regular interest payments, whereas equity financing does not require regular dividend payments.

Front

United Airlines has taken a $300 Million loan from Wells Fargo to purchase new aircrafts. The ____ loan agreement stipulates that these aircrafts will serve as collateral for the loan.

Back

secured

Front

Which federal agency is responsible for overseeing and enforcing securities & stock laws in the United States?

Back

SEC

Front

Which of the following is an example of debt financing? Issuing stock, Retained Earnings, Venture Capital, A bank loan

Back

A bank loan

Front

The category of financial ratios that assess a company's ability to cover its short-term obligations are known as ____ ratios.

Back

liquidity

Front

Identifying potential customers, delivering sales presentations, and offering post-sale support are all components of:

Back

personal selling

Front

The Balance Sheet for Gina’s Gourmet Goods LLC shows assets totaling $200,000 and liabilities totaling $90,000. Which of the following statements is correct? Owner’s Equity equals $290,000. Current Assets are worth $110,000. Net Income for the period is $110,000. Owner’s Equity equals $110,000.

Back

Owner’s Equity equals $110,000.

Front

When a company incentivizes customers to share their positive experiences on social media, or offers discounts for referrals, it is engaging in:

Back

viral marketing

Front

As a(n) _____, John facilitates transactions between buyers and sellers of agricultural machinery, ensuring the terms of the deal are agreed upon, but he does not own any of the machinery or offer any financial services to the buyers.

Back

broker/agent

Front

Soft drinks are most likely to have a(n) _______ distribution strategy.

Back

intensive