1. Financial leverage works for me if:

a) I borrow money b) I dont borrow money c) I lend money d) The interest rate is high e) Return on equity is lower than the interest rate

Financing by venture capital

1. is typically more expensive than a bank loan
2. due diligence is usually performed before the financing takes place
3. due diligence is performed usually after the financing took place
4. is usually taken when experiencing bankruptcy

Average collection period

1. is a working capital management tool
2. can be expressed in days
3. can be compared with previous reports
4. is an analysts tool

What is the correct order of steps to be taken during a budgeting process? a) 1. sales projection, 2. cost projection, 3. pro forma balance sheet, 4. pro forma cash flow statement b) 1. production plan, 2. cost projection, 3. sales projection, 4. pro forma balance sheet, 5. pro forma cash flow statement c) 1. cost projection, 2. sales projection, 3. pro forma balance sheet, 4. pro forma cash flow statement d) 1. cost projection, 2. pro forma cash flow statement, 3. sales projection, 4. pro forma balance sheet