Which of the Following Represents a Financing Decision

question 5

Multiple Choice

Which of the following represents a financing decision?

• A) A decision to borrow $10 million through a bank loan
• B) A decision to invest in the common stock of another corporation
• C) A decision to buy a new mainframe computer
• D) A decision to pay $1 million of accounts payable

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Definitions:

Balanced Scorecard

A strategic planning and management system that is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Organizational Performance

Refers to how well an organization is meeting its goals and objectives through the efficiency and effectiveness of its operations and resource use.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue.