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Finance questions need answer in 15 minutes! Quick! Thanks! Question 1 (1 point) Which one of the following statements is NOT true? Question 1 options:

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Finance questions need answer in 15 minutes! Quick!

Thanks!

image text in transcribed Question 1 (1 point) Which one of the following statements is NOT true? Question 1 options: 1) Accounts payable (trade credit), bank loans, and commercial paper are common sources of shortfinancing. 2) An informal line of credit is a verbal agreement between the company and the bank, allowing the to borrow up to an agreed-upon upper limit. 3) An informal line of credit is also known as "revolving credit." 4) A formal line of credit is also known as "revolving credit." Save Question 2 (1 point) Which one of the following statements about collection time is NOT true? Question 2 options: 1) Collection time, or float, is the time between when a customer makes a payment and when the cas available to the company. 2) Collection time can be broken down into three components. 3) Delivery time or mailing time is not part of the float. 4) Processing delay is part of the collection time. Save Save Question 4 (1 point) Bootstrapping is the process by which: Question 4 options: 1) entrepreneurs raise 'seed' money and obtain other resources necessary to start their businesses. 2) entrepreneurs flesh out their ideas and make them operational. 3) governments foster new business development. 4) entrepreneurs determine whether they have a viable business concept. Save Question 5 (1 point) Which one of the following statements is NOT true? Question 5 options: 1) The process by which many entrepreneurs raise 'seed' money and obtain other resources necessary their businesses is often called bootstrapping. 2) Most businesses are started by an entrepreneur who has a vision for a new business or product an passionate belief in the concept's viability. 3) The initial 'seed' money usually comes from the entrepreneur or other founders. 4) The seed money is spent on developing an initial public offering. Save Question 6 (1 point) Tactics that venture capitalists use to reduce the risk of their investment include: Question 6 options: 1) funding the ventures in stages, requiring entrepreneurs to make no personal investments, syndicat investments, and maintaining in-depth knowledge about the industry in which they specialise. 2) funding the ventures completely in the beginning, requiring entrepreneurs to make personal inves syndicating investments, and maintaining in-depth knowledge about the industry in which they sp 3) funding the ventures in stages, requiring entrepreneurs to make personal investments, syndicating investments, and maintaining in-depth knowledge about the industry in which they specialise. 4) None of the above. Save Question 7 (1 point) Basic services investment bankers provide when bringing securities to market include: Question 7 options: 1) origination 2) underwriting 3) distribution. 4) All of the above. Save Question 8 (1 point) Which one of the following statements is NOT true? Question 8 options: 1) In best-effort offering, the underwriters will suffer a financial loss if the offer price is set too high 2) In best-effort agreement, the issuing company will lose if the offer price is set too high. 3) If the underpricing is significant, the investment banking company will suffer a loss of reputation to price the new issue correctly and raising less money for its client than it could have. 4) Underpricing is defined as offering new securities for sale at a price below their true value. Save Question 9 (1 point) All of the following are costs of an IPO EXCEPT: Question 9 options: 1) Liquidity. 2) Underwriting spread. 3) Out-of-Pocket expenses. 4) Underpricing. Save Question 10 (1 point) Advantages of private placements include: Question 10 options: 1) Cost of funds may be lower. 2) Private lenders are more willing to negotiate changes to a bond contract. 3) The speed of private placement deals and flexibility in issue size. 4) All of the above

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