Podcast
Questions and Answers
What is the first step for a management team to achieve results through the efforts of others?
What is the first step for a management team to achieve results through the efforts of others?
- Set the strategic direction (correct)
- Manage the critical business operations on a daily and long-term basis
- Source the necessary resources
- Incentivise the organisation in an effective manner
Why must a company's management plan for unexpected events even if they are unlikely to occur?
Why must a company's management plan for unexpected events even if they are unlikely to occur?
- Contingency planning is a prerequisite to obtain insurance coverage and business loans
- Robust planning can reduce costs as an alternative to obtaining insurance coverage
- Many improbable unexpected events can have a significant effect on the business operations (correct)
- Adequate planning can help minimise the impact of disturbances relating to economic cycles and technological changes
Which organisational structure can inhibit management's ability to take decisions thus adversely affecting the company's performance and credit risk?
Which organisational structure can inhibit management's ability to take decisions thus adversely affecting the company's performance and credit risk?
- A structure that has distinct divisions between different functions
- A structure in which roles and responsibilities are clearly documented
- A pyramidal structure
- A centralised decision-making process (correct)
Which element in the development of a business plan would indicate a high degree of management risk?
Which element in the development of a business plan would indicate a high degree of management risk?
How does the income from a partnership firm differ from LLP income?
How does the income from a partnership firm differ from LLP income?
Which of the following is NOT a reason why a company's management must plan for unexpected events?
Which of the following is NOT a reason why a company's management must plan for unexpected events?
What happens to a partnership firm when a partner dies?
What happens to a partnership firm when a partner dies?
Which of the following statements about LLPs and partnership firms is correct?
Which of the following statements about LLPs and partnership firms is correct?
Which Act governs the operations of an LLP?
Which Act governs the operations of an LLP?
What is the short-term financing gap for a company with 47 trade receivables days, 68 inventory days, and 63 trade payables days?
What is the short-term financing gap for a company with 47 trade receivables days, 68 inventory days, and 63 trade payables days?
Which is the first step for a management team to achieve results through the efforts of others?
Which is the first step for a management team to achieve results through the efforts of others?
Which non-fund-based lending facility guarantees a one-time payment for a buyer of goods and services?
Which non-fund-based lending facility guarantees a one-time payment for a buyer of goods and services?
What is the definition of Common Equity Capital?
What is the definition of Common Equity Capital?
Which statement concerning the impact of foreign competition on debt repayment is most accurate?
Which statement concerning the impact of foreign competition on debt repayment is most accurate?
Which item would be correctly classified as a current asset?
Which item would be correctly classified as a current asset?
In the corporate governance process, who is responsible for determining overall business strategy by hiring managers and staff to help operate the business?
In the corporate governance process, who is responsible for determining overall business strategy by hiring managers and staff to help operate the business?
What determines the number of operating cycles that a business will have?
What determines the number of operating cycles that a business will have?
Which of the following ratios compares liabilities to capital?
Which of the following ratios compares liabilities to capital?
What can be inferred about a company with positive cash flow from operations that is borrowing and investing?
What can be inferred about a company with positive cash flow from operations that is borrowing and investing?
If a company's net sales were INR 1,25,00,885 for FYE 1, INR 1,37,45,473 for FYE 2, and INR 1,40,25,992 for FYE 3, what was the sales growth for FYE 3 compared to FYE 2?
If a company's net sales were INR 1,25,00,885 for FYE 1, INR 1,37,45,473 for FYE 2, and INR 1,40,25,992 for FYE 3, what was the sales growth for FYE 3 compared to FYE 2?
Which action by a borrower's management could adversely affect its cash flow and ability to meet obligations?
Which action by a borrower's management could adversely affect its cash flow and ability to meet obligations?
What is the impact of low market entry barriers on competition within an industry and the financial performance of businesses operating within it?
What is the impact of low market entry barriers on competition within an industry and the financial performance of businesses operating within it?
Which of the following ratios can be reviewed in an initial analysis of a company's financial statements to uncover opportunities and potential risk flags?
Which of the following ratios can be reviewed in an initial analysis of a company's financial statements to uncover opportunities and potential risk flags?
What is the significance of a company adopting a conservative financing strategy?
What is the significance of a company adopting a conservative financing strategy?
What is the calculation to determine EBITDA?
What is the calculation to determine EBITDA?
If a company has sales of $5,000,000, cost of goods sold of $2,600,000, operating expenses of $1,400,000, and interest expense of $60,000, what is its operating profit?
If a company has sales of $5,000,000, cost of goods sold of $2,600,000, operating expenses of $1,400,000, and interest expense of $60,000, what is its operating profit?
After how many days is a bank account considered 'out of order' if it continuously exceeds its sanctioned limit?
After how many days is a bank account considered 'out of order' if it continuously exceeds its sanctioned limit?
What is the primary reason for a lender to review external information about a company?
What is the primary reason for a lender to review external information about a company?
For which loan products does the Reserve Bank of India regulate interest rates?
For which loan products does the Reserve Bank of India regulate interest rates?
A current ratio of 1.33 indicates that:
A current ratio of 1.33 indicates that:
