10 Questions
What is the primary objective of financial decisions in a business firm?
To maximize shareholders' wealth
What type of investment decision is concerned with the selection of assets in which funds will be invested?
Long-term investment decision
What is the term for the value of capital assets available for production purposes at a given point in time?
Fixed capital
What is the process of evaluating and selecting projects to invest in, called?
Capital budgeting
What is the primary concern of financial management in a business firm?
Procurement of funds
What is the term for the decision related to financial matters of a business firm?
Financial decision
What is the main goal of investment decisions in a business firm?
To maximize returns on investment
What is the term for the investment of funds in short-term assets?
Short-term investment
What is the process of evaluating and selecting projects to invest in, based on?
Capital budgeting
What is the primary focus of financial management in a business firm?
Management of funds
This quiz is based on Durant's approach to capital structure, which suggests that the value of a firm is not affected by debt financing. It discusses how the market value of a firm increases with operating income, regardless of the capital structure. Test your knowledge on this traditional approach.
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