Questions from Financial Markets

Q: What is meant by trade credit? Briefly describe some of the

What is meant by trade credit? Briefly describe some of the possible terms for trade credit.

Q: What are the primary reasons for using trade credit for short-

What are the primary reasons for using trade credit for short-term financing?

Q: Under what circumstances would a business secure its financing through a commercial

Under what circumstances would a business secure its financing through a commercial finance company?

Q: What is commercial paper and how important is it as a source

What is commercial paper and how important is it as a source of financing?

Q: Is commercial paper a reliable source of financing? Why or why

Is commercial paper a reliable source of financing? Why or why not?

Q: 1. An efficient market has which of the following characteristics?

1. An efficient market has which of the following characteristics? a. New information causes a quick price change followed by smaller price changes as the market adjusts. b. New information causes a...

Q: When might a business seek accounts receivable financing?

When might a business seek accounts receivable financing?

Q: What safeguards may a bank establish to protect itself when it lends

What safeguards may a bank establish to protect itself when it lends on the basis of a customer’s receivables pledged as collateral for a loan?

Q: What is meant by “permanent” current assets? How do

What is meant by “permanent” current assets? How do “temporary” current assets differ from permanent current assets?

Q: Describe how a factor differs from a commercial finance company in terms

Describe how a factor differs from a commercial finance company in terms of accounts-receivable financing.