Morgan's Transition Morgan Is Currently a Manager of a Small Financial Planning

question 202

Multiple Choice

Morgan's Transition
Morgan is currently a manager of a small financial planning firm. He is seeking a new career with a large corporation in the banking industry. He recently applied for the financial manager opening at G & T Bank. He is concerned that the transition from his small firm to a large corporation will be difficult. To better prepare himself for this change, he has decided to enroll in a few business classes to strengthen his understanding of corporate finance. The business classes have proven to be a valuable tool for learning the critical skills needed to fully understand a financial plan, equity financing, and debt financing. Morgan now believes he has strengthened his competitive advantage in his quest for the job.
-Refer to Morgan's Transition. When Morgan has to counsel clients on short-term versus long-term financing needs, which of the following should he identify as a short-term financing need?

• A) Speculative production
• B) Business start-up costs
• C) Acquisitions and mergers
• D) Replacement of equipment
• E) Expansion of facilities

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Definitions:

Piaget

A Swiss psychologist renowned for his pioneering work in child development and his theory of cognitive development which describes how children construct a mental model of the world.

Concrete Operational

Pertains to a stage in Piaget's theory of cognitive development, where children gain the ability to think logically about concrete events.

Formal Operational

The stage of cognitive development in which people start to think logically about abstract concepts.

Egocentric Behavior

A self-centered approach where an individual perceives or interprets the world predominantly from their own perspective, often neglecting others' views.