Question 45 (Mandatory) (1 point) David is looking at an invoice dated July 1st for $1,000, which has terngs of 2/10; net 30. If he pays the bill on July 3rd how much should he write the cheque for? A) $700 B) $980 C) $998 D) $1,000 E) $900 $700 $980 $998 $1,000 $900 27 Question 46 (Mandatory) (1 point) Collateral is defined as: A) Any asset that a lender has the right to seize if a borrower does not repay a secured loan B) Any of the above can be collateral C) When you use liquidated assets to pay off a loan D) When you use your forecasted sales to secure a loan 30 33 36 E) The use of someone's signature in order to secure a loan Question 47 (Mandatory) (1 point) Why does a business firm require long-term sources of funds? A) To eliminate the need for frequently seeking short-term financing B) To improve its trade credit position C) To replace the need for insurance D) To finance annual bonus payments for employees E) To obtain funds for expenditures for fixed assets Question 48 (Mandatory) (1 point) Daniel is borrowing money which requires him to put up collateral. What type of credit is Daniel using? A) Line of credit B) Unsecured loans C) Commercial paper D) Secured loans E) Trade credit Question 49 (Mandatory) (1 point) Purchases of fixed assets; such as land, buildings, and machinery is called: A) Fixed expenditures B) Investments 36 C) Operating expenditures D) Budgeted expenditures 39 E) Capital expenditures Question 50 (Mandatory) (1 point) The risk-return relationship indicates that A) the lower the risk, the higher the potential return B) the higher the risk, the lower the potential return C) the higher the risk, the higher the potential return D) the higher the risk, the higher the actual return E) the lower the risk, the lower the actual return