Financial Management Fundamentals Quiz
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Questions and Answers

Which one of the following best defines financial management?

  • The process of buying and selling assets.
  • The decision-making process to make individuals and businesses better off.
  • The activities that create or preserve the economic value of assets. (correct)
  • The art and science of managing wealth.

    • Which of the following is NOT a financial function?

  • Dividend decisions
  • Marketing decisions (correct)
  • Investment decisions
  • Financing decisions

    • What is the main objective of financial management?

  • Maximizing liquidity
  • Minimizing risk
  • Maximizing wealth (correct)
  • Maximizing profit

    • What is the role of financial managers?

    <p>Managing cash flows</p> Signup and view all the answers

    What is the relationship between risk and returns in financial management?

    <p>There is a trade-off between risk and returns.</p> Signup and view all the answers

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