1. Cash kept on hand by a firm to pay normal daily expenses, such as employee wages and bills for supplies and utilities are ____________________.A
   1. Transaction Balances

1. 1. Marketable Securities
   2. Treasury Bills
   3. Lockboxes
2. Temporary investment of “extra” cash by organizations for up to one year in U.S. Treasury bills, certificates of deposit, commercial paper, or Eurodollar deposits are ________________.B

1. Transaction Balances

1. 1. Marketable Securities
   2. Treasury Bills
   3. Lockboxes
2. Short-term debt obligations the U.S. government sells to raise money and considered risk-free are _________________. C

1. Transaction Balances

1. 1. Marketable Securities
   2. Treasury Bills
   3. Lockboxes
2. ________________ are issued by commercial banks and brokerage companies.  They are available in minimum amounts of $100,000 but are typically in units of $1 million for large corporations investing extra cash.  They can be held, traded or sold for cash.A
   1. CDs
   2. Commercial Paper
   3. Marketable Securities
   4. Treasury Bills
3. Which of the following statements is false regarding Maximizing Accounts Receivable?
   1. Many businesses make most sales on credit, so managing receivables is important.
   2. Discounts for early payment and extending credit comes at the cost of lowered profits.
   3. Credit ratings can be provided by credit bureaus, credit-rating agencies such as Dun and Bradstreet and industry trade groups.
   4. Optimal Accounts Receivable are determined mainly by method of production.
4. The interest rate that commercial banks charge their best customers (usually large corporations) for short-term loans is called a/an __________________. B
   1. Unsecured Loan
   2. Prime Rate
   3. Secured Loan
   4. Factor
5. Choose the statement below that adequately describes Capital Budgeting and Project Selection.
   1. When considering investments overseas, project selection and capital budgeting must include consideration of the political climate and economic stability of a region.
   2. Capital Budgeting is the process of analyzing the needs of the business and selecting the assets that will maximize its value. This process continues after purchase as all assets and projects must be continually reevaluated against the company’s needs
   3. The longer a capital project is expected to last, the greater its potential risk as it may become obsolete or wear out prematurely.
   4. All of the above statements are true and adequately describe Capital Budgeting and Project Selection.
6. All the statements below are true except:
   1. Returns from any project must cover not only operating costs but interest expenses on the debt used to finance the project.
   2. The most efficient and profitable companies attract the lowest-cost funds because they typically offer reasonable returns for low relative risk.
   3. Risk is not affected by the stability and competitive nature of the marketplace and the world economy.
   4. New companies have a strong motivator to use financial resources wisely because over time they will reduce the costs of their funds and increase profit.
7. _________________ are debts that will be repaid over several years, such as long-term bank loans and bond issues.
   1. Long term liabilities
   2. Short term liabilities
   3. Securities
   4. Financial Instruments
8. ________________ are backed by specific collateral that must be forfeited in the event the issuing firm defaults.
   1. Secured Bonds
   2. Serial Bonds
   3. Unsecured Bonds
   4. Floating Rate Bonds
9. Stockholders Equity includes:
   1. Common and Preferred Stock
   2. Common Stock, Retained Earnings and Dividends
   3. Preferred Stock, Retained Earnings and Dividends
   4. Common and Preferred Stock and Retained Earnings
10. Stock Exchanges and Over-the-Counter Markets are ______________________.
    1. Primary Markets
    2. Initial Public Offerings
    3. Secondary Markets
    4. Examples of Investment Banking
11. Sources of criminal and civil law include all the following, except:
    1. The Constitution
    2. Lawsuits
    3. Federal and state statues
    4. Federal and state administrative agencies
12. _______________ must determine the facts of the case, decide which law or set of laws is pertinent to case, and apply those laws to resolve the dispute.
    1. Trial Court
    2. Municipal Court
    3. Jurisdictions
    4. Appeals Court
13. ____________is a form of negotiation to resolve a dispute by bringing in one or more third-party mediators, usually chosen by the disputing parties, to help reach a settlement.____________ involves submission of a dispute to one or more third-party arbitrators, usually chosen by the disputing parties, whose decision usually is final.
    1. Arbitration; Mediation
    2. Alternative Dispute Resolution; Arbitration
    3. Mediation; Mini Trial
    4. Mediation; Arbitration
14. Which of the following statements is false regarding Federal Regulatory Agencies:
    1. Covers product liability, safety, and the regulation and deregulation of public utilities.
    2. Has the power to enforce specific laws.
    3. Has limited discretion in establishing operating rules and regulations.
    4. Has some discretion in establishing operating rules and regulations.
15. Article 11 of the UCC stipulates all the following, except:
    1. A sales agreement can be enforced even though it does not specify the selling price or the time or place of delivery.
    2. It also requires that a buyer pay a reasonable price for goods at the time of delivery if the buyer and seller have not reached an agreement on price.
    3. Prohibiting the sale and distribution of adulterated, misbranded, or hazardous food and drug products.
    4. Addresses the rights of buyers and sellers, transfers of ownership, warranties, and the legal placement of risk during manufacture and delivery.
16. A/An ________________ is imposed on the producer or seller by law, although it may not be a written document provided at the time of sale.
    1. Express Warranty
    2. Implied Warranty
    3. Product Liability
    4. Tort
17. Contracts that most states say must be in writing are _____________________.
    1. Contracts involving sale or an interest in land.
    2. Contracts that are voluntary agreements.
    3. Contracts that can be fulfilled within one year.
    4. Contracts for sale of goods that cost more than $1000.

1. A common business relationship created when one person acts on behalf of another and under that person’s control is called _______________.
   1. Agency
   2. Consideration
   3. A Mutual Agreement
   4. A Contract
2. _______________ is simply the total value of all personal assets less the total value of unpaid debts or liabilities.
   1. Credit worthiness
   2. Short Term Financial Goals
   3. Net Wealth
   4. Personal Net Worth
3. One of the cornerstones of your financial plan should be to keep _________ to a minimum and to work at reducing __________.
   1. Debt; Credit Usage
   2. Credit Usage; Debt
   3. Purchases; Debt
   4. Debit Card Purchases; Credit Card Usage
4. When developing a Savings and Investment Plan, which of the following types of risks should you be concerned about?
   1. Short Term
   2. Long Term
   3. Default
   4. Average Debt per Borrower
5. Employee Retirement Plans _________________________________.
   1. Consider tax deferment and penalties for early withdrawal.
   2. Generally, do not have defined or contribution plans.
   3. Generally, will default and not pay employees.
   4. Do not contribute money every pay period.

1. How do most Americans file their annual taxes? B
   1. They hire a Tax Accountant
   2. Electronically using a digital tax prep tool
   3. They calculate themselves or ask a friend, family member
   4. Brick & Mortar Firm

“Our Prices Start at $11.99. As Our First Client, Use Coupon Code GET15 to claim 15% Discount This Month!!”