Business Finance Fundamentals

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Questions and Answers

What does 'Estimates Capital Requirements' help in anticipating?

  • Funds required for running the business (correct)
  • The cost of office supplies
  • The market demand for products
  • The number of employees needed

What is involved in 'Deciding Capital Structure'?

  • Deciding on the location of the business premises
  • Choosing the company's slogan and tagline
  • Deciding the proper portion of different securities like common equity, preferred equity, and debt (correct)
  • Selecting the company's logo and brand colors

What should 'Select sources of Fund' involve for every business?

  • Properly analyzing different sources of funds available and choosing the cheapest and least risky one (correct)
  • Choosing the source of funds without considering risk or cost
  • Selecting the most expensive source of funds
  • Not analyzing different sources of funds and choosing any available option

What is important once funds are procured for a business?

<p>Properly allocating them among profitable investment avenues (D)</p>
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What does 'Raises Shareholders value' aim at achieving?

<p>Increasing the amount of return to shareholders by reducing the cost of operations and increasing the profits (B)</p>
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What does 'Management of cash' involve for finance managers?

<p>Supervising all cash movements through proper accounting of all inflows and outflows (A)</p>
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