Homework answers / question archive / 1)Which of the following is an example of a market risk for a company that manufactures automobiles? a) Being suddenly unable to source a critical component of the automobile b) Damage to completed cars being transported to a buyer c) A competitor that offers a similar line of cars with comparable quality at lower prices d) A failure in the company's accounts receivable process   2

1)Which of the following is an example of a market risk for a company that manufactures automobiles? a) Being suddenly unable to source a critical component of the automobile b) Damage to completed cars being transported to a buyer c) A competitor that offers a similar line of cars with comparable quality at lower prices d) A failure in the company's accounts receivable process   2

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1)Which of the following is an example of a market risk for a company that manufactures automobiles?

• a) Being suddenly unable to source a critical component of the automobile
• b) Damage to completed cars being transported to a buyer
• c) A competitor that offers a similar line of cars with comparable quality at lower prices
• d) A failure in the company's accounts receivable process

2. When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

• a) sunk costs
• b) taxes
• c) opportunity costs
• d) depreciation

3. When managing its cash, a company should make use of float to __________.

• a) make payments before they come due
• b) increase the length of the disbursement cycle
• c) set aside cash for future payments
• d) decrease the length of time for a payment to clear the bank

4. Which of the following is an advantage of venture capital?

• a) Venture capital investments typically carry a small amount of risk and generate small to moderate returns.
• b) New companies can access large amounts of upfront capital that does not have to be repaid, as a loan would be.
• c) Venture capital is typically easy to secure even with the most basic of business plans.
• d) There are no upfront costs to a company seeking venture capital funding.