10 Questions
Which of the following best describes strategic financial management?
The study of finance with a long term view considering the strategic goals of the enterprise
What is the objective of financial management?
To maximize shareholders wealth
Which aspects of the overall plan of an organization concern financial managers?
Different parts of the business plan, including marketing and sales plan, production plan, personnel plan, capital expenditure, etc.
Why is financial management increasingly referred to as 'Strategic Financial Management'?
To provide a broader frame of reference
What does the term 'strategic' mean in the context of strategic financial management?
Something that is done to achieve a particular purpose
Which of the following best describes financial derivatives?
Financial instruments that are linked to a specific financial instrument or indicator or commodity
How should transactions in financial derivatives be treated?
As separate transactions
What is the main difference between financial derivatives and debt instruments?
Financial derivatives do not have a principal amount to be repaid and do not accrue investment income
What are some purposes of financial derivatives?
Risk management, hedging, arbitrage between markets, and speculation
What is the source of value for financial derivatives?
The price of an underlying item, such as an asset or index
Test your knowledge on strategic financial management and its role in achieving long-term goals for enterprises. Explore the concept of strategic financial management and gain a deeper understanding of its importance in driving strategic decision-making.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
