Financial Management and Business Financing Quiz

Credit extended by suppliers allowing a company to delay payment for goods or services.

A measure of the profitability of an investment relative to its cost.

Working capital ensures a company can cover its short-term expenses and obligations.

Financial management aims to increase the value of the company's stock, benefiting its shareholders.

It provides insight into a company's cash flow activities, showing how cash is generated and used.

Using profits generated by the company to finance its operations or expansion.

Provides a snapshot of a company's assets, liabilities, and equity at a specific moment.

Money available today is worth more than the same amount in the future due to its potential earning capacity.

Measure of a company's financial leverage, indicating the proportion of debt used to finance its operations relative to equity.

Return on investment ratio is not a common financial ratio; it's typically calculated as return on investment.

Financial planning involves forecasting future financial requirements and making plans to meet them.

Financial leverage involves using debt to amplify returns, while operating leverage involves fixed costs' impact on profitability.

Raising capital by selling shares of ownership in the company.