Hi thanks in advance for your support $18.$ According to the Ansoff Matrix, if a company is focusing on new products and new markets, what type of strategy does it have?

Product Development

Market Development

Market Penetration

Diversification

$19.$ Select ALL the statements that indicate poor working capital management.

There are more raw materials ordered than needed in the company.

It takes a long time for the company to collect receivables from customers.

The company extends the time it takes to pay its payables.

The company has low accounts receivable relative to its revenue.

$20.$ Select ALL the strategies a company can use to improve the working capital cycle.

Prepay inventory to start the cash conversion cycle sooner

Extend payment to suppliers without straining relationships

Extend credit term for customers to encourage more sales

Keep more inventory on hand to ensure sales

Offer early payment discounts to customers

$21.$ Based on the information below, how much does the company need to finance the working capital funding gap and how much is the lender willing to provide?

Revenue :$3,800,000$

Cost of Goods Sold :$2,000,000$

Days in Period :$365$

Funding Gap $($Days$)$ :$62$

Balance Up to

Receivables

$500,000$

$50\%$

Inventory

$300,000$

$50\%$

Options:

Financing required: $$305,753$; Financing allowed: $$250,000$

Financing required: $$645,479$; Financing allowed: $$400,000$

Financing required: $$339,726$; Financing allowed: $$400,000$

Financing required: $$483,795$; Financing allowed: $$150,000$

$22.$ Which of the following best describes the top$-$down analysis to forecast revenue?

Use the historical figures to forecast the future years and calculate the year$-$over$-$year revenue

Start with total addressable market and forecast the revenue based on market share and segments

Start with most basic drives of the business and build the analysis to revenue $($e$.$g$.$ the number of units that are sold multiplied by the price$)$

Analyze the relationship between revenue and other factors of the business and use the trend to forecast revenue

$23.$ Which of the following assumptions are commonly used to forecast inventory? Select ALL correct answers.

Revenue

Cost of sales

Days in period

Capital expenditure

Inventory days

$24.$ T$.$ Jones, M$.$ Smith, and R$.$ Wilson have provided a joint and several guarantee for $$600,000.$ In a default situation the lender:

Must choose which individual to pursue for $$600,000$

Can pursue a total of $$600,000$

Can pursue all three individuals for $$600,000$ each

Can pursue the three individuals to a maximum of $$200,000$ each

$25.$ Which of the following statements is NOT correct about loan security?

Opinion letters are often required to provide proof of legal counsel's advice and conclusions.

The registration of security is done differently in various jurisdictions around the world.

It is ideal to over$-$secure the loan in order to reduce the risk for a lender.

It is the borrower$$s responsibility to ensure that the loan security documentation is properly completed and registered.

$26.$ Select ALL the direct forms of collateral security from the following list.

Personal guarantee

Stocks

Patents

Inventory

Letter of comfort

$27.$ What is the best next step when there is a breach of a loan covenant?

Raise the interest rate

Extend time for the borrower to comply with the covenant

Review and amend the covenant

Investigate why the breach happened

$28.$ According to the given information calculate the total liabilities to equity ratio.

Income Statement $(000\text{'}$s$)$

Balance Sheet $(000\text{'}$s$)$

Revenues : $40,789$

Cash: $9,121$

Cost of sales: $(18,429)$

Accounts receivable : $6,904$

Gross profit : $22,360$

Inventory : $9,601$

Depreciation and amortization : $(1,495)$

Prepaid expenses : $5,513$

Marketing : $(9,598)$

Total current assets : $31,139$

Sales : $(352)$

Property, plant and equipment : $14,150$

General and administration :$(1,062)$

Goodwill :$3,460$

Operating profit : $9,853$

Total assets : $48,749$

Interest : $(571)$

Taxes : $(1,500)$

Accounts payable :$4,800$

Net income : $7,782$

Short$-$term loan :$3,853$

Total current liabilities :$8,653$

Long$-$term loan :$15,000$

Share capital :$17,314$

Retained earnings :$7,782$

Total shareholders' equity :$25,096$

Total liabilities and shareholders' equity :$48,749$

Answer options:

A$))0\mathrm{.}60$

B$))1\mathrm{.}37$

C$))0\mathrm{.}75$

D$))0\mathrm{.}94$

$29.$ Which of the following is NOT a piece of information one would find on a term sheet?

Covenants and security

B$.$Repayment terms

C$.$ Loan maturity date

D$.$ Cash flow analysis

$30.$ Which of the following is NOT a reason why financial institutions complete annual reviews on a borrower?

Annual reviews are best practice due diligence associated with monitoring a borrower$$s loans

Annual reviews give borrowers a sense of key loan parameters such as the interest rate, time to maturity, and security

Annual reviews help lenders to identify early warn