Questions from Financial Markets

Q: Why would a business use the services of a factor?

Why would a business use the services of a factor?

Q: When a business firm uses its inventory as collateral for a bank

When a business firm uses its inventory as collateral for a bank loan, how is the problem of storing and guarding the inventory accomplished for the bank?

Q: Explain the strategies businesses can use to finance their assets with short

Explain the strategies businesses can use to finance their assets with short-term and long-term funds.

Q: Explain how a conservative approach to financing a firm’s assets is a

Explain how a conservative approach to financing a firm’s assets is a low risk/low expected return strategy whereas an aggressive approach to financing is a high risk/high expected return strategy.

Q: What influences affect the nature of the demand for short-term

What influences affect the nature of the demand for short-term versus long-term funds?

Q: Prepare a list of advantages and disadvantages of short-term bank

Prepare a list of advantages and disadvantages of short-term bank borrowing relative to other short-term financing sources.

Q: 1. In the context of investing, what is a portfolio

1. In the context of investing, what is a portfolio? a. A briefcase full of legal papers b. A collection of your personal art work c. Any combination of financial assets or investments d. A plan f...

Q: What is meant by an unsecured loan? Are these loans an

What is meant by an unsecured loan? Are these loans an important form of bank lending?

Q: Explain what a bank line of credit is.

Explain what a bank line of credit is.

Q: Explain how discounting and compensating balances affect the effective cost of financing

Explain how discounting and compensating balances affect the effective cost of financing.