Financial Management: Maturity Exam Question 4

Financial Management of a Company

Costs and Revenues

• Costs are expenses incurred by a company to produce and sell its products or services.
• Revenues are the income earned by a company from its sales.
• The difference between revenues and costs is the company's profit.

Price

• Price is the amount of money customers pay for a product or service.
• Price is influenced by various factors, including production costs, market conditions, and competition.

Taxation and Profit Distribution

• Taxation refers to the amount of money a company pays to the government as taxes.
• Profit distribution refers to the way a company distributes its profits among its stakeholders, such as shareholders, employees, and owners.

Payment Systems

• Payment systems refer to the methods used by customers to pay for products or services.
• Examples of payment systems include cash, debit cards, credit cards, and online payment systems.
• Debit cards deduct money directly from the customer's account.
• Credit cards allow customers to borrow money to make purchases, with interest rates and fees applying.

Payment Capability

• Payment capability refers to a company's ability to pay its debts and financial obligations on time.
• A company's payment capability is essential for its financial stability and credibility.

This quiz assesses knowledge of financial management concepts, including costs, revenues, pricing, taxation, and profit distribution. It is designed for a maturity exam and covers various aspects of financial decision-making.