Complete the Following Using the Terms Listed

question 81

Multiple Choice

Complete the following using the terms listed.
-In addition to fees,some lenders require the borrower to keep so-called_____-5 to 20% of the outstanding loan amount-in a checking account.

• A)Venture capitalists
• B)private placements
• C)factoring
• D)capital investment analysis
• E)debt capital
• F)equity capital
• G)financial plan
• H)leveraged buyout
• I)private equity funds
• J)divestiture
• K)Marketable securities
• L)financial manager
• M)tender offer
• N)Trade credit
• O)leverage
• P)capital structure
• Q)Asset intensity
• R)bonds
• S)spin-off
• T)Hedge funds
• U)Inventory control
• V)dividends
• W)debt-to-equity (D/E)
• X)compensating balances
• Y)shareholder's equity

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Definitions:

Cash Basis

An accounting method where revenues and expenses are recorded when they are actually received or paid, not when they are incurred.

Cash Receipts

The total amount of cash received by a business during a specified period.

Cash Flows

The net amount of cash and cash-equivalents being transferred into and out of a business, used to evaluate its financial health.

Operating Activities

Activities that are part of a company's primary business operations, such as selling goods and services.