A privately held company is planning to issue an IPO. If the company decides to do so, which of the following will MOST LIKELY result?
A. Decreased liquidity for the company's stock
B. Decreased reporting and disclosure costs for company
C. Increased managerial flexibility for owners of the company
D. Increased ability to determine company value
The owner of XYZ Company just completed an initial public offering. Which of the following is the MOST LIKELY outcome?
A. The owner will gain more operational control.
B. The owner will be able to diversify his personal portfolio.
C. The company will save on accounting costs.
D. The company will increase productivity.
Which of the following is a benefit to a company that publicly trades its stock?
A. It passes public disclosure requirements to shareholders.
B. It reduces management and shareholder conflicts.
C. It allows management holding a majority ownership to have control.
D. Its stock price reflects the value of the company in the market.
When a company decides to discontinue a product line or divest of a subsidiary, it has made what type of corporate financial decision?
A. Accounting
B. Financing
C. Funding
D. Investment
A company's basic investment objectives should include all of the following EXCEPT:
A. ensuring liquidity.
B. optimizing returns.
C. maximizing exposure.
D. minimizing risk.
A New York company wishes to use its treasury management system to send US funds to its London UK subsidiary. Which one of the following enables the same day settlement of funds transfer?
A. Automated Clearing House
B. Correspondent accounts with the Federal Reserve
C. Bankers Automated Clearing Service
D. Clearing House for Interbank Payment Systems
A publicly-traded U.S. company has a German subsidiary which has accumulated significant cash balances. The company needs to pay its quarterly dividend but lacks the funds to make the payment. What is its BEST alternative for obtaining the funds?
A. Sell additional shares through a secondary offering.
B. Declare a one-time intercompany dividend.
C. Obtain private equity funding.
D. Sign a short-term intercompany loan with the subsidiary.
A Euro denominated payment can be settled through all of the following EXCEPT:
A. TARGET (Trans-European Automated Real-Time Gross Settlement Express Transfer System).
B. EBA (Euro Bankers Association).
C. ACSS (Automated Clearing Settlement System).
D. Correspondent Banking.
The main objective of a company's international cash management function is to:
A. reduce cross-border fund transfers.
B. collect and disburse cash.
C. optimize global cash resources.
D. minimize foreign exchange risk.
Treasury uses which of the following internal sources of information in its daily operations?
A. Product development plans
B. Information technology budgets
C. Marketing reports
D. Sales and purchasing summaries
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