Some Fundamental Concepts That Nonfinancial Managers Need to Understand Include

question 94

Multiple Choice

Some fundamental concepts that nonfinancial managers need to understand include:

• A)the ability to assess day-to-day cash management.
• B)the ability to assess future financing requirements.
• C)the ability to understand the role of capital markets in raising long-term funds.
• D)All of the above.

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Definitions:

Conditional Guarantor

A party that agrees to fulfill the obligations of a debtor, but only under specific conditions outlined in an agreement.

Premium

The amount paid for an insurance policy or the cost above the nominal value of something.

Surety

A person or entity that assumes responsibility for another's performance of an obligation, such as the repayment of a loan or the fulfillment of a contract.

Suretyship Relationship

is a legal arrangement where a surety guarantees the performance of a debtor's obligation to a creditor, assuming liability if the debtor fails to fulfill the contractual obligation.