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Mastering Financial Management
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Mastering Financial Management

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Questions and Answers

Which of the following is NOT a primary concern of financial management?

  • Profitability
  • Cash and credit
  • Expenses
  • Maximizing shareholder value (correct)
  • Who do financial managers typically report to?

  • Senior management (correct)
  • Line managers
  • Stockholders
  • Treasurers
  • What does financial management primarily focus on in terms of working capital?

  • Long-term liabilities
  • Current assets (correct)
  • Fixed assets
  • Current liabilities
  • What is the role of financial management in managing fluctuations in foreign currency and product cycles?

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

    How does financial management relate to the day-to-day management of funds?

    <p>It overlaps with treasury management</p> Signup and view all the answers

    Which of the following forms of external funds is NOT part of a company's capital structure?

    <p>Internal funds</p> Signup and view all the answers

    What does financial leverage refer to?

    <p>The amount of debt in relation to other sources of capital</p> Signup and view all the answers

    What is the potential risk of having too much debt in a company's capital structure?

    <p>Greater concern among investors</p> Signup and view all the answers

    Who is responsible for establishing a company's capital structure?

    <p>Company management</p> Signup and view all the answers

    What is an important consideration for regulated utilities in the United States when setting rates charged to customers?

    <p>Cost of capital</p> Signup and view all the answers

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