Podcast
Questions and Answers
Which of the following is NOT a factor that can influence the needs of owners/shareholders?
Which of the following is NOT a factor that can influence the needs of owners/shareholders?
- Attitude towards risk
- Balance between income and capital growth needs
- Time preference and consumption needs
- Compliance with industry regulations (correct)
What is the opportunity cost of capital in the context of financial decision-making?
What is the opportunity cost of capital in the context of financial decision-making?
- The potential benefits forgone by not investing in the best alternative (correct)
- The cost of complying with corporate governance regulations
- The cost of maintaining existing operations
- The cost of financing a project from external sources
Which of the following is NOT a responsibility of managers/directors as mentioned in the text?
Which of the following is NOT a responsibility of managers/directors as mentioned in the text?
- Maximizing shareholder wealth at all costs (correct)
- Respecting and abiding by rules and regulations
- Considering ethical considerations and corporate governance
- Carrying out their work with due diligence
What can affect the patterns of future cash flows for a company?
What can affect the patterns of future cash flows for a company?
What is the significance of calculating the Net Present Value (NPV) for projects with different cash flows?
What is the significance of calculating the Net Present Value (NPV) for projects with different cash flows?
Which of the following is NOT mentioned as a responsibility or consideration for managers/directors in the text?
Which of the following is NOT mentioned as a responsibility or consideration for managers/directors in the text?
What is the primary concern regarding financial reporting for managers/directors?
What is the primary concern regarding financial reporting for managers/directors?
Which of the following stakeholders' interests are NOT directly mentioned in the text?
Which of the following stakeholders' interests are NOT directly mentioned in the text?
According to the contractual theory mentioned in the text, what is the primary responsibility of managers/directors?
According to the contractual theory mentioned in the text, what is the primary responsibility of managers/directors?
Which of the following is NOT a factor that can influence the needs of providers of finance (shareholders) according to the text?
Which of the following is NOT a factor that can influence the needs of providers of finance (shareholders) according to the text?
