Question

In: Finance

Which of the following statements best describes alternatives to short-term financing policies? Select one: a. A...

Which of the following statements best describes alternatives to short-term financing policies?

Select one:

a. A firm following an aggressive financing policy would finance all its permanent NOWC with long-term capital.

b. If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.

c. A conservative financing policy is one in which the firm finances all of its fixed assets with long-term capital and part of its permanent net operating working capital with short-term, nonspontaneous credit.

d. Accruals are an expensive way to finance working capital.

Solutions

Expert Solution

If a company receives trade credit under terms 2/10, net 30, this implies the company has 10 days of free trade credit.

the above is answer

because after 10 days, there will be interest charges

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

Which of the following statements best describes a common resource? Select one: a. A resource that...
Which of the following statements best describes a common resource? Select one: a. A resource that we cannot stop people from using, and when it is used, its benefit available to others is reduced. b. A resource that is non-excludable but rival. c. A resource that is typically characterised by overuse. d. A resource that would not have occurred were the property rights well defined. e. All of the above
Which of the following statements best describes a common resource? Select one: a. A resource that...
Which of the following statements best describes a common resource? Select one: a. A resource that we cannot stop people from using, and when it is used, its benefit available to others is reduced. b. A resource that is non-excludable but rival. c. A resource that is typically characterised by overuse. d. A resource that would not have occurred were the property rights well defined. e. All of the above
1. Which of the following statements best describes a sampling distribution? Select one: a. It is...
1. Which of the following statements best describes a sampling distribution? Select one: a. It is the distribution of the values of a variable in the population from which the sample is taken b. It is the distribution of the values of a statistic that resembles the normal distribution when the sample size is large c. It is the distribution of the values of a statistic calculated from 1000 simple random samples displayed in a histogram. d. It is the...
Which of the following statements best describes the concept used to value shares? Select one: a....
Which of the following statements best describes the concept used to value shares? Select one: a. Market price can be expressed as the present value of an infinite stream of dividends assuming a company has an infinite life. b. The present value of the dividend stream and expected capital gain must be calculated separately and then added together. c. The value of an infinite stream of dividends discounted by the current short-term interest rate assuming a company has an infinite...
Which of the following best describes a lien?​ Select one: a. ​It is an encumbrance or...
Which of the following best describes a lien?​ Select one: a. ​It is an encumbrance or claim against property. b. ​It is the interest paid on a mortgage. c. ​It is a consideration given to the mortgager. d. ​It is the title deed of the property mortgaged.
Which of the following best describes valence? Select one: a. It is the consequence resulting from...
Which of the following best describes valence? Select one: a. It is the consequence resulting from performance or lack of performance. b. It is the perceived likelihood that employees' efforts will enable them to attain valuable goals. c. It is the perceived likelihood that performance will be followed by a particular outcome. d. It is the value the expected outcome holds for the person contemplating it. 
Which of the following best describes the goal of financial management? Select one: a. Maximisation of...
Which of the following best describes the goal of financial management? Select one: a. Maximisation of shareholder wealth b. Maximisation of profit c. Minimisation of risk d. Preparation of financial reports
Which of the following statements correctly describes the short-term response towards a reduction in wealth. The...
Which of the following statements correctly describes the short-term response towards a reduction in wealth. The FE curve stays unchanged The FE curve shifts to the right The FE curve shifts to the left None of the above 0.3 points    QUESTION 10 Which of the following statements correctly describes the short-turn response towards an increase in current output The IS curve stays unchanged The IS curve shifts to the right The IS curve shifts to the left None of...
Which of the following statements describes a program? Select one: A. A series of coordinated, related,...
Which of the following statements describes a program? Select one: A. A series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a common goal B. A higher-level group of projects targeted at a common goal C. A higher-level group of projects with different unrelated goals D. (A) and (B) are correct E. (A), (B) and (C) are all correct The amount of time an activity can be delayed without delaying the entire...
Which of the following best describes the primary key? Select one: a. It's the encryption key...
Which of the following best describes the primary key? Select one: a. It's the encryption key that gets exchanged first with another party. b. It's the password that needs to be entered to open the database. c. It's the first item that is entered into the database on a screen. d. It's a field that uniquely identifies the record.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT