Morgan's Transition Morgan is currently a manager of a small financial planning firm. He is ...

Morgan's Transition
 
  Morgan is currently a manager of a small financial planning firm. He is seeking a new career with a large corporation in the banking industry. He recently applied for the financial manager opening at G & T Bank. He is concerned that the transition from his small firm to a large corporation will be difficult. To better prepare himself for this change, he has decided to enroll in a few business classes to strengthen his understanding of corporate finance. The business classes have proven to be a valuable tool for learning the critical skills needed to fully understand a financial plan, equity financing, and debt financing. Morgan now believes he has strengthened his competitive advantage in his quest for the job.
 
  Refer to Morgan's Transition. When Morgan creates a financial plan, his first step should be which of the following?
 A) Identify available sources of financing.
  B) Decide which goals to finance.
  C) Describe which type of financing to use.
  D) Establish a set of valid goals and objectives.
  E) Determine how much money is needed to accomplish each goal.

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Question 2 - When a manager has a choice, positive reinforcement should be used before negative reinforcement.
 
 Indicate whether the statement is true or false

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Question 3 - Which of the following is true of a securities broker?
 A) They sell securities for higher prices than they paid to purchase them.
  B) They collect premiums from policy holders.
  C) They act as agents for investors who want to buy or sell financial securities.
  D) They issue new securities to raise financial capital.

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Question 4 - The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field.
 
 Indicate whether the statement is true or false

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Question 5 - Morgan's Transition
 
  Morgan is currently a manager of a small financial planning firm. He is seeking a new career with a large corporation in the banking industry. He recently applied for the financial manager opening at G & T Bank. He is concerned that the transition from his small firm to a large corporation will be difficult. To better prepare himself for this change, he has decided to enroll in a few business classes to strengthen his understanding of corporate finance. The business classes have proven to be a valuable tool for learning the critical skills needed to fully understand a financial plan, equity financing, and debt financing. Morgan now believes he has strengthened his competitive advantage in his quest for the job.
 
  Refer to Morgan's Transition. When Morgan has to counsel clients on short-term versus long-term financing needs, which of the following should he identify as a short-term financing need?
 A) Speculative production
  B) Business start-up costs
  C) Acquisitions and mergers
  D) Replacement of equipment
  E) Expansion of facilities

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Question 6 - The basic premise of reinforcement is that behavior that is rewarded is likely to be repeated and behavior that is punished is less likely to recur.
 
 Indicate whether the statement is true or false

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Question 7 - Which of the following is a difference between credit unions and commercial banks?
 A) Unlike commercial banks, credit unions are not-for-profit organizations.
  B) Unlike credit unions, commercial banks are non-depository organizations.
  C) Unlike credit unions, commercial banks are owned by their depositors.
  D) Unlike commercial banks, credit unions charge very high interest rates on loans.