1 )For a business firm, what type of activities does financial management involve?

2) How does short-term financing differ from long-term financing? Give two business uses for each type of financing.

3) In your own words, describe the riskreturn ratio.

4) What is the function of a cash budget? A capital budget?

5) What is zero-base budgeting? How does it differ from the traditional concept of budgeting?

6) What are four general sources of funds?

7) How important is trade credit as a source of short-term financing?

8) Why would a supplier require a customer to sign a promissory note?

9) What is the prime rate? Who gets the prime rate?

10) What are the advantages of financing through the sale of stock?


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