In order to increase sales, the sales manager of your firm is proposing to offer 90 day credit terms rather than 60 day credit terms to customers. As a financial manager which of the following would be one of your primary concerns should your firm make this change to credit terms?
Select one:
a. How you would invest excess cash that is created by the change to credit terms.
b. As receivable collections begin to slow, how much of a negative impact will this change have on the firm's cash on hand?
c. This change would have no effect on the firm's cash position; therefore there is no need to be concerned.
d. The effect this change would have on taxable income.
You are a financial manager for a large Fortune 500 firm, typically the most important financial market for you to follow would be:
Select one:
a. The Money Market
b. The Stock Market
c. The Treasury Market
d. The IPO Market
Ford Motor Company plans to sell stock to build a new plant, the sale of stock would be considered a(n):
a. Primary market transaction
b. Secondary market transaction
c. Initial Public Offering
d. Exchange of physical assets.