Financial Management Quiz

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Questions and Answers

Financial management is primarily concerned with managing human resources

False (B)

What is financial management concerned with?

Financial management is concerned with profitability, expenses, cash and credit, and maximizing the value of the firm for stockholders.

Who are financial managers specialized professionals reporting to?

Financial managers are specialized professionals directly reporting to senior management, often the financial director.

Financial management does not involve the management of funds on a day-to-day basis

False (B) Signup and view all the answers

What does financial management generally focus on in terms of working capital management?

Financial management generally focuses on short term working capital management, which includes current assets, current liabilities, and managing fluctuations in foreign currency and product cycles. Signup and view all the answers

What is financial management involved with in terms of day-to-day management of funds?

Financial management is involved with the efficient and effective day-to-day management of funds, and it overlaps with treasury management. Signup and view all the answers

What does financial management also entail in addition to short term working capital management?

In addition to short term working capital management, financial management is also involved with long term strategic financial management. Signup and view all the answers

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Study Notes

Definition of Financial Management

Financial management is not primarily concerned with managing human resources

Financial Manager's Role

Financial managers are specialized professionals who report to top management

Key Aspects of Financial Management

Financial management does not involve the day-to-day management of funds
Financial management generally focuses on long-term financial planning and policy decisions in terms of working capital management
Financial management is involved with making strategic financial decisions, in addition to short-term working capital management
Financial management also entails long-term investment decisions and fundraising