[Solved] #1 The major advantage of debt financing is the: a. number of... (2024)

#1 The major advantage of debt financing is the:

a.
number of different sources from which it is available

b.
lack of dependence on collateral

c.
absence of factoring

d.
deductibility of interest expenses

e.
amortization benefits

#2 Which of the following is an example of nondepository financial institutions?

a.
credit unions

b.
consulting firms

c.
commercial finance companies

d.
savings banks

e.
all of the above

#3 When The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate.

a.
prime

b.
discount

c.
commercial bank

d.
going

e.
reserve

#4 _____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance.

a.
Organizational performance appraisal

b.
Performance analysis

c.
Financial reporting

d.
Ratio analysis

e.
Benchmarking

#5 _____ are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.

a.
Accounts payable

b.
Marketable securities

c.
Notes receivable

d.
Accounts receivable

e.
Accrued expenses

#6 The ratios that are of special interest to the firm's creditors and measure the firm's ability to pay short term debts as they come due are called _____ ratios.

a.
profitability

b.
earnings

c.
liquidity

d.
current

e.
activity

#7 The idea behind _____ is the need that criminal investigators have for examining evidence on computer hard drives such as in e mails or databases in order to build cases against embezzlers and others.

a.
a cyber strike force

b.
data mining

c.
digital forensics

d.
data combing

e.
data sleuthing

#8 The idea behind _____ is the need that criminal investigators have for examining evidence on computer hard drives such as in e mails or databases in order to build cases against embezzlers and others.

a.
a cyber strike force

b.
data mining

c.
digital forensics

d.
data combing

e.
data sleuthing

#9 By limiting the number of times a person can use a type of software before registering as the authorized owner of that software, software firms are dealing with problems associated with:

a.
unfair access

b.
software shrinkage

c.
software piracy

d.
technological turnover

e.
hardware sabotage

#10 How does an executive information system (EIS) differ from a decision support system (DSS)?

a.
An EIS answers "what if" questions; a DSS does not.

b.
All EIS are provided by application service providers, and DSS are typically purchased.

c.
EIS is customized for an individual executive, and DSS is not.

d.
An DSS answers "what if" questions; an EIS does not.

e.
An EIS is a communication system while a DSS is a transaction system.

#11 When compared to a wired LAN, the wireless LAN is:

a.
unable to transmit data at one single site

b.
faster and more reliable

c.
is unable to communicate with wired communication systems

d.
significantly more expensive

e.
typically inconvenient to use