Short-Term Business Financing

31. Which of the following is NOT a characteristic of a current asset?

a. cash

b. marketable securities

c. accounts payable

d. accounts receivable

32. The balanced approach is also referred to as the ___ ___ ___.

a. maturity matching approach

b. immature matching approach

c. permanent matching approach

d. primary matching approach

33. What is a line of credit?

a. a loan limit established by the consumer to payback a loan

b. a loan limit established by a bank for each business customer

c. a loan limit established by a bank for each student loan

d. a loan limit established by a bank for each consumer

34. Who established the Small Business Administration (SBA)?

a. the federal government

b. OSHA

c. it is a private owned entity

d. it is owned by a foreign firm

35. What is commercial paper?

a. a long-term promissory note

b. a short-term promissory note

c. a long-term secured loan

d. a short-term secured loan

Chapter 17: Capital Budget Analysis

36. Which of the following is true about an independent project?

a. it is not in direct competition with another project

b. they are in direct competition with one another

c. they are not evaluated based on shareholder wealth

d. they are never evaluated

37. What is a SWOT analysis?

a. a review of the stock strategies

b. a review of the firm