Role of Financial Management

What is the primary goal of financial management

• To maximise the return

• To minimize risk

• To maximize profit

• To maximize wealth of owners

The focal point of financial management in a firm is

• The number of products created by the firm

• The minimization of taxes

• The creation of value for shareholders

• The Rand profit earned by the firm

Retained earnings are

• Internal sources of funds

• External sources of funds

• Both

• None of the above

A good indicator of a business's future returns

• Acid-test

• EPS

• Average return on debtors

• Petty Cash

Which is NOT a primary responsibility of a financial manager?

• Financial planning

• Investment decisions

• Financing decisions

• Purchasing inventory