Question 85

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Cash-flow management is

		the process of checking actual performance against plans to ensure that desired financial results occur.
		a firm's strategies for reaching some future financial position.
		rules governing a firm's extension of credit to customers.
		the granting of credit by one firm to another.
		the management of cash inflows and outflows to ensure adequate funds for purchases and the productive use of excess funds.

Question 86

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Which of the following is usually associated with unsecured short-term loans?

		factoring
		trade acceptances
		trade drafts
		collateral
		compensating balances

Question 87

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The first step in a risk management process is to

		monitor results of program.
		measure frequency and severity of potential losses.
		identify risks and potential losses.
		evaluate alternatives.
		implement the program.

Question 88

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A trade draft is

		a form of trade credit in which buyers must sign statements of payment terms attached to merchandise by sellers.
		a loan for which the borrower must provide collateral.
		a loan for which collateral is not required.
		a form of trade credit in which sellers ship merchandise on faith that payment will be forthcoming.
		a form of trade credit in which buyers sign promise-to-pay agreements before merchandise is shipped.

Question 89

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A(n) __________ is a form of trade credit in which buyers must sign statements of payment terms attached to merchandise by sellers.

		revolving credit agreement
		open-book credit
		promissory note
		trade acceptance
		line of credit