Introduction to Financial Management Education Quiz
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Questions and Answers

What is the main focus of financial management?

The efficient and effective management of funds by understanding and applying financial management tools, concepts and theories.

What are the activities of a financial manager?

Financing, investing, and operating.

What does financing in financial management involve?

Making decisions on how to finance long-term investments and working capital.

What is the focus of investing in financial management?

<p>Choosing small and large projects with several investment opportunities and evaluating them in terms of return of investment and expected cash flows.</p> Signup and view all the answers

What does operating in financial management deal with?

<p>The daily operations of the company.</p> Signup and view all the answers

Who are the key individuals involved in financial management within an organization?

<p>Board of Directors, President, VP for Sales and Marketing, VP for Finance, Accounting Department, VP for Production, Finance or Treasury Department, and VP for Administration.</p> Signup and view all the answers

What is the role of the Finance Manager in determining finance working capital accounts?

<p>To determine how finance working capital accounts such as receivables and inventories are managed.</p> Signup and view all the answers

What is the responsibility of the finance manager regarding the declaration and distribution of dividends?

<p>Responsible for the declaration and distribution of dividends.</p> Signup and view all the answers

Define Business Environment in the context of the text.

<p>Refers to all the internal and external factors that affect how the company functions.</p> Signup and view all the answers

What does the Financial System primarily link?

<p>The savers and the users of funds.</p> Signup and view all the answers

What are the main services provided by Financial Institutions?

<p>Financial services, including loan, credit, fund administration, financing, depository, and safekeeping.</p> Signup and view all the answers

How do Thrift Banks differ from Commercial Banks?

<p>Thrift Banks cater to countryside or rural areas, while Commercial Banks focus mainly on top companies located in major cities.</p> Signup and view all the answers

What distinguishes Universal Banks from Commercial Banks?

<p>Universal Banks have a clientele mostly comprising larger corporations and offer an expanded line of financial services.</p> Signup and view all the answers

What is the primary function of Investment Banks?

<p>To successfully raise funds for big corporations and governments.</p> Signup and view all the answers

What distinguishes Leasing Companies from banks?

<p>Leasing Companies are not governed by central banks.</p> Signup and view all the answers

How are Investment Companies regulated?

<p>They are regulated by the Securities and Exchange Commission.</p> Signup and view all the answers

Leasing companies are governed by central banks.

<p>False</p> Signup and view all the answers

Investment companies are not regulated by the Securities and Exchange Commission.

<p>False</p> Signup and view all the answers

Thrift banks mainly cater to major cities, unlike commercial banks.

<p>False</p> Signup and view all the answers

Universal banks offer a more limited range of financial services compared to commercial banks.

<p>False</p> Signup and view all the answers

Investment banks primarily raise funds for small businesses.

<p>False</p> Signup and view all the answers

The Financial System primarily links borrowers and depositors.

<p>False</p> Signup and view all the answers

Financial institutions primarily provide financial services in the form of credit and fund administration.

<p>False</p> Signup and view all the answers

The role of the Finance Manager involves determining the working capital accounts and also setting dividend policies.

<p>True</p> Signup and view all the answers

Business environment refers only to the internal factors that affect how a company functions.

<p>False</p> Signup and view all the answers

Non-declaration of dividends by finance managers may not disappoint investors.

<p>False</p> Signup and view all the answers

Financial Management involves the study of how individuals evaluate investment opportunities, business proposals, and raise capital to fund them.

<p>False</p> Signup and view all the answers

The role of a Financial Manager includes making decisions on how to finance long-term investments and working capital, as well as choosing small and large projects with various investment opportunities.

<p>True</p> Signup and view all the answers

The efficient and effective management of funds is achieved through understanding and applying financial management tools, concepts, and theories.

<p>True</p> Signup and view all the answers

The Board of Directors, President, VP for Sales and Marketing, VP for Finance, Accounting Department, VP for Production, and Finance or Treasury Department are all involved in Financial Management within an organization.

<p>True</p> Signup and view all the answers

Financial Management in an Organization includes activities such as financing, investing, and operating.

<p>True</p> Signup and view all the answers

Operating in financial management deals with choosing small and large projects with several investment opportunities.

<p>False</p> Signup and view all the answers

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