Understanding Financial Risk
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Questions and Answers

What is the goal of Financial Management?

  • To maintain the value of shares of stocks
  • To minimize the value of shares of stocks
  • To maximize the value of shares of stocks (correct)
  • To eliminate the value of shares of stocks

    • What is risk in finance?

  • An uncertain event that will damage your assets
  • An uncertain event that might damage your assets (correct)
  • A certain event that might damage your assets
  • A certain event that will damage your assets

    • How does financial risk impact one's finances?

  • It stabilizes one's finances
  • It creates a loss in finances (correct)
  • It creates a gain in finances
  • It has no impact on one's finances

    • What decisions does Financial Management deal with?

    <p>Decisions that maximize shareholder wealth value</p> Signup and view all the answers

    Who is responsible for making decisions for a corporation?

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

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