Ch19 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:,...

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Add, modify, and remove questions. Select a question type from the Add Question drop-down list and click Go to add questions. Use Creation Settings to establish which default options, such as feedback and images, are available for question creation. COURSES > FUNDAMENTALS OF CORPORATE FINANCE:, 9/E - ROSS > CONTROL PANEL > POOL MANAGER > POOL CANVAS Pool Canvas Add Multiple Choice Creation Settings Name Chapter 19 Cash and Liquidity Management Description Questions which Blackboard's assessment component is incapable of supporting are not included in the export. Instructions Add Question Here Question 1 Multiple Choice Question Yesterday, the president of RB Enterprises received a phone call from DLK, a competitor. DLK is a sole proprietorship. An unexpected family situation has caused the owner to suddenly want to retire and relocate closer to his family. Thus, the assets of DLK are being offered to RB Enterprises at a bargain basement price. While RB Enterprises had not anticipated purchasing these assets, it was decided that the opportunity was too good to pass up. This illustrates which of the following needs to hold cash? Answer precautionary transaction speculative compensation float Correct Feedback Refer to section 19.1 Incorrect Feedback Refer to section 19.1 Add Question Here Question 2 Multiple Choice Question GT Motors regularly issues short-term debt to finance its daily operations. Suddenly, the credit markets froze and no funds were available for borrowing. Fortunately, the firm had some cash reserves saved that it was able to use to fund its operations until additional credit was available. The need to retain cash for situations such as this is referred to as which one of the following motives for holding cash? Answer speculative float compensating precautionary transaction Correct Feedback Refer to section 19.1 Incorrect Feedback Refer to section 19.1
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Add Question Here Question 3 Multiple Choice Question The cash found in a cash drawer that a check-out clerk uses to make change is an example of which of the following motives for holding cash? Answer speculative daily float compensating balance precautionary transaction Correct Feedback Refer to section 19.1 Incorrect Feedback Refer to section 19.1 Add Question Here Question 4 Multiple Choice Question Float is defined as the: Answer amount of cash a firm can immediately withdraw from its bank account. difference between book cash and bank cash. change in a firm's cash balance from one accounting period to the next. amount of cash a firm has on hand. cash balance according to a firm's records. Correct Feedback Refer to section 19.2 Incorrect Feedback Refer to section 19.2 Add Question Here Question 5 Multiple Choice Question A lockbox is a: Answer special safe used by a firm for overnight storage of any cash or undeposited checks. special safe used by a firm that can only be opened at
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This note was uploaded on 06/22/2010 for the course FIN 600 taught by Professor Marks during the Spring '10 term at Odessa College.

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Ch19 - COURSES > FUNDAMENTALS OF CORPORATE FINANCE:,...

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