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290. To raise the funds for the major improvements needed at the funeral home, Mort has
talked to two investors about incorporating his business and selling them shares of stock in the
company. Mort is considering the use of:
291. Mort approached the chief lending officer at First Virginia Bank about obtaining a $75,000
loan. The banker said she would approve the loan provided that the funeral home's building was
pledged as collateral. The banker was offering a(n):
292. After much searching, Mort located an old banking friend of his father's. The banker
offered Mort up to $25,000 in unsecured funds, which Mort's firm could borrow any time within a
year, as long as the bank has the money available. Mort was offered a(n):
293. After seeing Mort's advertisement:
"You Aren't Gettin' Any Younger!
Start Planning for
Heaven Today!"
a(n) ___________ firm decided the aging population was a good investment.
Although they typically look at start-ups with great promise, they approached Mort with $6 million
dollars for his new idea of a major three-city expansion that included six new funeral homes, a
crematory, and mausoleum. After researching the offer, Mort agreed to give up 50% ownership of
the business in order to secure these funds. His last thoughts as he began to sign the papers
were: "Now, I'll be able to compete with the big guys!"
294. What is financial management? Identify the duties and responsibilities of financial
managers.
295. Identify and describe the major steps involved in financial planning.
296. Explain the role the operating budget, the capital budget, and the cash budget play in
financial planning.
297. Identify and describe three types of short-term financing.
298. What is equity financing? Identify and describe the major sources of equity financing.
299. What are two major forms of debt financing? Describe and differentiate between the two
types.
300. Explain the term leverage. When is it more favorable for firms to use this strategy?
