Financial Management Quiz

Financial managers are specialized professionals directly reporting to senior management, often the financial director (FD). They are concerned with short term working capital management, managing fluctuations in foreign currency and product cycles, efficient day-to-day management of funds, and long term strategic financial management.

The main concerns of financial management are profitability, expenses, cash, and credit, with the goal of maximizing the value of the firm for stockholders.

Financial management overlaps with treasury management as it entails the efficient and effective day-to-day management of funds, which is also a part of treasury management.

<p>The function of financial management is seen as 'staff', not 'line', indicating that it is a support function rather than directly involved in the primary operations of the organization.</p> Signup and view all the answers

<p>Financial management is concerned with the efficient acquisition and deployment of both short-term working capital and long-term strategic financial resources to ensure the objectives of the enterprise are achieved.</p> Signup and view all the answers

<p>Venture capital provides private equity financing to startups and early-stage companies with high growth potential in exchange for equity or ownership stake, with the aim of supporting risky start-ups in the hopes that some will become successful.</p> Signup and view all the answers

<p>Venture capital firms typically invest in start-ups based on innovative technology or business models, often from high technology industries like information technology, clean technology, or biotechnology.</p> Signup and view all the answers

<p>Start-ups face high uncertainty, which results in high rates of failure for VC investments.</p> Signup and view all the answers

<p>Typical venture capital investments occur after an initial 'seed funding' round.</p> Signup and view all the answers

<p>Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the companies they support will become successful.</p> Signup and view all the answers