Joe's Plumbing purchases a vanity, toilet, shower enclosure, faucets and plumbing supplies for a major bathroom renovation job. Joe has to pay the supplier but does not expect to be paid by the customer until he has completed the job. This is an example of:
A) debt-capital needs.
B) trade credit.
C) equity financing.
D) negative cash flow.
E) factoring.
Question 2 - After finding no qualified candidates in-house, you decide to recruit externally by posting a job description on Monster.com and LinkedIn. This describes which step in the recruiting process?
A) Attracting candidate pool
B) Screening candidates
C) Interviewing candidates
D) Comparing candidates
E) Checking references
Question 3 - Each of the following causes a cash-flow problem except:
A) slow-paying customers.
B) a large proportion of credit sales.
C) customers who pay early.
D) unexpected slow selling seasons.
E) embezzlement of company funds.
Question 4 - Your management team has completed an initial review of rsums to eliminate candidates who don't meet the minimum qualifications. This describes which step in the recruiting process?
A) Attracting candidate pool
B) Screening candidates
C) Interviewing candidates
D) Comparing candidates
E) Checking references
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