the business will have the funds it needs at the right time. Considering an example of Dimensional Info Tech‚ we have following cash management practices in use. Use online banking (e.g.‚ electronic fund transfers‚ online bank reconciliations on a daily basis) Consolidate bank accounts Implement an automatic cash application system Post checks from photocopies in order to avoid delays in check posting Collect receivables through lockboxes Implement physical cash sweeping (e.g.‚ zero-balance accounts)
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markets 5. The central bank Money The definition of money is at least cash and demand deposits (checking accounts). Several people‚ furthermore‚ add time deposits to that definition. The poorest countries don’t even have money‚ so the financial system can’t exist there. Money (a stable currency) is the most fundamental component and a pre-requisite of any financial system. Financial Institutions Financial institutions include 1) investment banks‚ 2) commercial banks‚ 3) Financial service
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Chapter 6: Discussion Question #4 (p. 223) 4. Why is it usually easier to forecast sales for seasoned firms in contrast with early-stage ventures? Typically‚ it is easier to forecast a seasoned firm’s sales to that of an early-stage venture because the seasoned firm will have an operational history. Basing current sales on historical data is easier to do than trying to estimate sales based on little to no historical data to benchmark from. If you are a start-up / early-stage venture and
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Chapter 1 The Government and Not-For-Profit Environment TRUE/FALSE (CHAPTER 1) 1. The main objective of a typical governmental or not-for-profit entity is to earn a profit. 2. A government’s budget may be backed by the force of law. 3. Governmental entities have no need for an accounting system. 4. A government’s internal managers rely on general purpose financial statements for a considerable amount of information about their government. 5. Governments and not-for-profits
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for information on the AACSB letter indicators (F‚ M‚ etc.) on the subject lines. Multiple Choice: True/False (17-2) Multinational fin. mgmt. F T Answer: a EASY [i]. Multinational financial management requires that financial analysts consider the effects of changing currency values. a. True b. False (17-2) Multinational fin. mgmt. F T Answer: b EASY [ii]. Legal and economic differences among countries‚ although important‚ do NOT pose significant problems for most
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products would evolve. However that did not materialize. A. What is “Law of One Price”?. When would that exist globally? B. Identify the major pricing strategies/ methodologies of corporations in pricing products and services. Gulf Bank lecture: cost pricing‚ profit based pricing C. Discuss the impact of the Internet on “Global Pricing Strategies” of firms with specific reference to ‘Internet Pricing’ and ‘Brick and Mortar pricing’. Pricing of commodities should
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each for questions 1-10) 1. HSBC is a UK-based bank‚ and it holds more than 50% equity of Hang Seng which is a Hong Kong based bank. Which of the following statement is correct? A) Hang Seng is the representative office of HSBC at HK B) Hang Seng is the foreign branch of HSBC C) Hang Seng is the foreign subsidiary bank of HSBC D) Hang Seng and HSBC are two independent banks. 2. Which of the following services is not provided by a typical bank? A) Accept deposits B) Make loans to a firm
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since you built a new house Ans: D Difficulty: Medium 3. Which of the following is FALSE? A) U.S. GDP underestimates actual economic activity because it does not include underground activity B) an increase in the ratio of currency holdings to bank deposits may be seen as evidence for an increase in underground activity C) if the underground economy grows rapidly‚ then the rate of economic growth will be underestimated D) if the underground economy grows‚ people’s standard of living will decline
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Fin 350 Exam 2‚ Fall 2010 Name ___________________________ This has answers to the problems which I believe‚ but cannot guarantee‚ are correct. 1. Under certain conditions‚ a particular project may have more than one IRR. One condition under which this situation can occur is if‚ in addition to the initial investment at time = 0‚ a negative cash flow occurs at the end of the project’s life. a. True b. False 2. The modified IRR (MIRR) method has wide appeal to professors‚ but most business
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Fin 534 chapter 1‚Quiz 1 • Question 1 | | | | |You recently sold 100 shares of your new company‚ XYZ Corporation‚ to your brother at a family reunion. At the reunion your brother gave | | | | | |you a check for the stock and you gave your brother the stock certificates. Which of the following statements best describes
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