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Johnny Cupcakes: Financial and Cash Flow Management

1)Question Number1)As the video explains, Johnny Cupcakes has remained a smaller, privately owned company and is proud of that fact. By successfully managing its budget and cash reserves, Johnny Cupcakes has avoided __________, a method of financing discussed in the chapter.

a) short-term financing

b) trade-credit financing

c) budget financing

d)debt financing

e) equity financing

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2)When Johnny Earle was 18, he wanted to start his own business, so his mother, Lorraine Earle, used her own credit card to help him. According to the chapter, this would be considered use of __________.

a) long-term debt financing

b) long-term equity financing

c) cost of capital

d) opportunity cost

e) short-term debt financing

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3)As the video discusses, after the business took off, Lorraine Earle joined her son and became the head of financial management; this position is known in the chapter as the __________.

a) CFO

b) CPA

c) CEO

d) CIO

e) CTO

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4)As seen in the video, management at Johnny Cupcakes faced the choice between opening a new store in London or continuing with the four established locales; this illustrates __________ as outlined in the chapter.

a) cash flow management

b) managing cash reserves

c)a risk/return trade-off

d) a leveraged equation

e) a financial plan

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5)Lorraine Earle states that she has created a "London fund" where she places extra income from sales and promotions to help start up the London location. According to information presented in the chapter, this is an example of __________.

a)managing cash reserves

b)inventory management

c)economic order quantity

dinvesting in a hedge fund

e)developing a financial plan

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