Question

Match the following terms to the definition that best describes the term.  

___ Finance

    ___ Equity financing

    ___ Debt financing

    ___ Short-term loan

    ___ Intermediate loan

    ___ Long-term loan

    ___ Collateral

    ___ Interest

    ___ Unsecured loan

    ___ Budget

    ___ Cash budget

    ___ Capital budget

    ___ Financial manager

    ___ Financial plan

   

(a) Loan that matures in one to five years.

     (b) Assets that a bank accepts as security for a loan.

     (c) A future plan of cash inflows and outflows for a given time period.

     (d) Raising money for a company through the sale of the company’s stock.

     (e) Document that shows the amount of funds a company needs and details a strategy for obtaining those funds.

     (f) A future financial plan for a given time period.

     (g) Raising money for a company by taking on debt through the sale of bonds.

     (h) The cost of borrowing money.

     (i) A future plan of major expenditures for equipment.

     (j) Person who determines how much money the company needs, how and where it will get the necessary funds, and how and when it will repay the money it has borrowed.

     (k) Loan that matures in more than five years.

     (l) A loan that does not require collateral.

     (m) The activities involved in planning for, obtaining, and managing a company’s funds.

     (n) Loan that matures in less than one year.

Answer 1

Answer:

(a) Loan that matures in one to five years.- INTERMEDIATE LOAN

(b) Assets that a bank accepts as security for a loan.- COLLATERAL

     (c) A future plan of cash inflows and outflows for a given time period.- CASH BUDGET

     (d) Raising money for a company through the sale of the company’s stock.- EQUITY FINANCING

     (e) Document that shows the amount of funds a company needs and details a strategy for obtaining those funds.- BUDGET

     (f) A future financial plan for a given time period.- FINANCIAL PLAN

     (g) Raising money for a company by taking on debt through the sale of bonds.- DEBT FINANCING

     (h) The cost of borrowing money.- INTEREST

     (i) A future plan of major expenditures for equipment.- CAPITAL BUDGET

     (j) Person who determines how much money the company needs, how and where it will get the necessary funds, and how and when it will repay the money it has borrowed.- FINANCIAL MANAGER

     (k) Loan that matures in more than five years.- LONG TERM LOAN

     (l) A loan that does not require collateral.- UNSECURED LOAN

     (m) The activities involved in planning for, obtaining, and managing a company’s funds.- FINANCE

     (n) Loan that matures in less than one year.- SHORT TERM LOAN