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Company A purchases materials on cash-before-delivery terms, while Company B uses paid-on-production terms. Both companies are diligent with the protection of assets, but Company B has concerns with respect to transfer of title of the materials. Company B is MOST LIKELY what type of business?
Without regard to costs, which of the following concentration mechanisms maximizes investment income in a multi-bank environment?
Which of the following will MOST LIKELY be affected when a company changes its terms from net 30 to 2/10 net 30?
In terms of targeting a company’s capital structure, when is it beneficial to assume a high level of financial risk?
To monitor financial institution service quality, a company would use all of the following measures EXCEPT:
The interest costs on commercial paper are determined by all of the following EXCEPT the:
An employee is considering two investment strategies for his 401(k) plan:
Strategy #1: Invest all contributions in a money market fund that has returned 5% annually
Strategy #2: Invest all contributions in a stock fund that has returned 9% on average, although annual returns have varied between (2%) and 12%
Assuming that the employee makes a one-time investment of $12,000 and that both strategies continue to perform as they have historically, how much more or less could the stock fund be worth after one year compared to the money market fund?
Banks often control information flow, records and assets, therefore it is critical that banks have:
A U.S. firm acquires a large U.K. manufacturer that generates high levels of cash flow in its local currency. The purchase is denominated in British pounds and is financed through the issuance of 10-year, 7.5% U.S. dollar bonds. The U.S. firm will rely entirely on the U.K. manufacturer's cash flows to fund the interest payments on the bonds. What derivative instrument would help the U.S. firm manage its FX exposure?
To strengthen outside auditor independence with regard to publicly held companies, the Sarbanes-Oxley Act requires that:
The key parties involved in a disaster recovery plan are generally classified as internal resources or external counterparties. When evaluating the risks of both parties, which of the following can be assumed?
An internal auditor discovers that employees can enter and approve their own wire transfers. This practice violates what internal control?
The rate of interest commercial banks charge their best credit rated customers is called the:
Consolidation and specialization in the financial services industry have made financial institution and financial service provider selection a(n):
Which of the following is true when a company purchases goods using trade credit from suppliers?
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