Finance Management Overview
12 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary goal of a firm according to the text?

  • To provide goods and services to the public
  • To maximize the profits of the firm
  • To maximize the wealth of its shareholders (correct)
  • To maximize the wealth of its stakeholders

    • What is the main reason firms exist according to the text?

  • To meet the needs of the local community
  • To provide employment opportunities
  • Because investors are willing to bear the risk (correct)
  • To generate revenue for the government

    • What is the definition of management according to the text?

  • The process of budgeting, saving, and forecasting financial activities
  • The process of raising funds and investing them to earn a profit
  • The process of managing a firm's finances, including investing, borrowing, and lending
  • The process of planning, organizing, directing and controlling activities to meet objectives (correct)

    • What is the definition of finance according to the text?

    <p>The art and science of managing money, including activities like investing, borrowing, lending, budgeting, saving, and forecasting</p> Signup and view all the answers

    What are stakeholders according to the text?

    <p>Individuals who have an economic interest in the firm, but are not owners</p> Signup and view all the answers

    What is the main difference between finance at a personal level and finance in a business context according to the text?

    <p>Personal finance is concerned with individual decisions, while business finance is concerned with firm-level decisions</p> Signup and view all the answers

    What is the main goal of maximizing shareholder wealth according to the text?

    <p>To maximize profitability for the firm's owners</p> Signup and view all the answers

    How are profits commonly measured by corporations?

    <p>By calculating Earnings per Share (EPS)</p> Signup and view all the answers

    What is the primary focus of a firm with a stakeholder approach?

    <p>Preserving stakeholder well-being</p> Signup and view all the answers

    Which violations are associated with Business Ethics according to the text?

    <p>Violation of accounting standards</p> Signup and view all the answers

    What key decisions do Finance Managers make related to investment?

    <p>Decisions on long-term projects to create value for owners</p> Signup and view all the answers

    Which principle guides Finance Managers in considering the relationship between profit and risk?

    <p>Time Value of Money</p> Signup and view all the answers

    More Like This

    Personal Finance Management
    15 questions

    Personal Finance Management

    CharitableMossAgate6867 avatar
    CharitableMossAgate6867
    Portfolio Management Fundamentals
    5 questions

    Portfolio Management Fundamentals

    InstructiveUnicorn avatar
    InstructiveUnicorn
    Finance Unit 13
    10 questions

    Finance Unit 13

    GrandDwarf5939 avatar
    GrandDwarf5939
    Finance Activities Overview
    48 questions

    Finance Activities Overview

    RadiantLaplace9461 avatar
    RadiantLaplace9461
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser