EXERCISE 10:

Definitional questions
1. wages and taxes are common source of short-term credit. However, most firms
have little control over the of these accounts.
2. Accounts payable, or , is the largest single source of short-term credit for
most businesses.
3. A loan is one where collateral such as or has been
pledge in support of the loan.
4. A Pledging Accounts Receivable is an understanding between a bank and a borrower as to the
maximum loan that will be permitted.
5. Commercial paper can only be issued by highly credit-worthy firms.

EXERCISE 11:
Choose three (3) important features of preferred stock. Explain.
Choose two (2) important features of corporate ordinary share. Explain.
EXERCISE 12:
What are the factors do lender consider when making loans? Explain.
EXERCISE 13:
Explain the concept of the following:
1. Expected rate of return
2. Expected risk
3. Taxes
EXERCISE 14.1
In your own opinion, should insurance products be viewed as an investment alternative? Explain
EXERCISE 14.2
State the personal goals that you like to achieve by the time you are
a. 30 years old
b. 50 years old
c. 65 years old