Banks usually assess the credit worthiness of companies to establish a credit relationship with companies by in view of 5 C’s of credit. These are: character, capacity, capital, collateral and conditions.

Credit risk (Default risk) is defined as "the risk that a company or individual will not be able to pay the contractual interest or principal on its debt obligations".

Marketing mix can be considered as the tactical-level marketing facilities, which are directed towards a certain target group, identified in the phase of strategic decisions. Four Ps are identified to be the initial letters of the most fundamental marketing actions, namely, product, price, promotion and place. The correct answer is A.

Help managers make decisions to fulfill an organization’s goals. Reports to those inside the organization for:
• Planning
• Directingandmotivating
• Controlling
• Performance evaluation

Financial markets can be classified as:
• Money markets: Markets where short-term securities like commercial paper and treasury bills are traded.
• Capital markets: Markets where long-term securities like bonds and stocks are traded.

They can also be classified as:
• Primary markets: Markets in which securities are offered for the first time.
• Secondary markets: Markets in which currently outstanding securities are traded. There is no such thing as a "tertiary market."

Services (Intangible Products)
-Reselling services is unusual
-Many services cannot be inventoried
-Many aspects of quality are difficult to measure
- Selling is often a part of the production of service
- Service provider, not the service itself, is often transportable
- Location of a facility is not important
-Service is often difficult to automate
-Revenue is generated primarily from the intangible services even though there are some goods which are associated with services

Cellular manufacturing is a process that produces families of parts within a single line or cell of machines operated by operators who work only within the line or the cell. Production management involves the application of planning, organizing, directing, and controlling the production process.

Working capital can be financed by:
• Accrued wages and salaries,
• Accrued taxes,
• Short-term loans provided from commercial banks, finance companies or factors,
• Issuing commercial papers (short-term promissory notes).

Pro forma income statement exhibits forecasted revenues and expenses for a future period. Pro forma balance sheet displays forecasted assets and total financing provided by debt and equity financing at a future date.

Stocks grant the holders:
• Limited liability in case of bankruptcy (limited with the amount of investment).
• Claim on income in the form of dividends.
• Claim on assets if the business goes bankrupt.
• Voting rights in the election of the Board of Directors.
• Preemptive rights.
Preemptive rights gives the preferred stockholders the right to purchase new shares of stock proportionate with their existing share of ownership.

When there is a high level of customisation, low volume and one-of-a kind product like bridges or cargo airplanes, project processes are used. The correct answer is A.

Bookkeeping is the act of recording and organizing financial transactions in the accounting system in accordance with the generally accepted accounting principles (GAAP). It ensures that records of the individual financial transactions are correct, up-to-date, and comprehensive. In modern accounting systems, bookkeeping is processed by computer software.

-Bookkeeping and accounting are not the same processes.

-Bookkeeping is the recording of a firm’s financial transactions which usually involves only the recording of budgetary events.

In practically every business, there are threebasic steps in the recording process:
1. Analyze each transaction for its effects on the accounts,
2. Enter the transaction information in a journal,
3. Transfer the journal information to the appropriate accounts in the ledger

Accountancy profession in Turkey is regulated through the law No. 3568, “The Law of Independent Accountancy, Certified Public Accountancy, and Sworn-in Certified Public Accountancy”. It was enacted in 1989.

-The Law defines accounting and auditing as a profession and recognizes two qualifications of accounting and auditing professionals granted by the Union of Chambers of Certified Public Accountants (TÜRMOB): Certified Public Accountant (CPA, Serbest Muhasebeci Mali Müşavirler-SMMM) and Swornin Certified Public Accountant (Sworn-in CPAs, Yeminli Mali Müşavirler-YMM). Only accountants who have been awarded a license by TÜRMOB are entitled to render professional services.

-In distinguishing between the two titles, SMMMs may keep books, prepare financial statements, and conduct general audits, but cannot perform tax audits nor provide consulting services.

The following formula is used to calculate EVA:
EVA= NOPAT / (Capital Base, net of depreciation * WACC)
NOPAT: Net Operating Profit After Tax
WACC : Weighted Average Cost of Capital
If EVA is positive, then it means the company is adding value.