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?