Selection of a Source of Short-Term Financing Should Include All

question 13

Multiple Choice

Selection of a source of short-term financing should include all of the following EXCEPT

• A) the effective cost of credit.
• B) the availability of financing in the amount and for the time needed.
• C) the floatation costs for debentures.
• D) the effect of the use of credit from a particular source on the cost and availability of other sources of credit.

Analyze the effects of inflation rates on exchange rates through the lens of relative purchasing power parity.

Recognize the significance of Eurocurrency, Eurobonds, and other international financial instruments and markets.

Understand the criteria for valid measurement in research.

Recognize and differentiate between various types of scales and their purposes.

---

Definitions:

Financial Matters

Issues or activities related to the management, investment, and control of money and assets.

Venture Capital Fund

A fund that invests in high-growth companies in exchange for equity, or ownership stakes, typically in early-stage companies.

Private Placement

The offering of securities to a relatively small number of select investors as a way of raising capital.

Flotation Costs

Expenses incurred by a company in issuing new stocks or bonds, including underwriting costs, legal fees, and registration fees.