INTRODUCTION TO FINANCIAL MANAGEMENT

1.     What are the activities that make the money is transferred among business, individual and government in finance concept?

• Selling, buying, and saving
• The activities that make the money is transferred among business, individual, and government in finance concept are borrowing, lending, investing, and taxation.
• Donating, borrowing, and spending
• Renting, leasing, and donating

1.     Which of the followings is NOT the importance of financial management?

• Maximizing employee satisfaction
• Increasing profits
• Reducing financial risks
• There is no specific option provided in the question to choose from.

1.     Financial markets are the markets that ease the flow of funds among _______, firms, agencies and investor.

• government

• police

• hospital

• school

1.     The primary goal of financial management is _______________.

• to minimize shareholder wealth
• to maximize shareholder wealth
• to increase company debt
• to increase company revenue

1.     Which of the followings is the capital market instruments?

• Collectible items
• Savings accounts
• Real estate properties
• Stocks, bonds, and derivatives are examples of capital market instruments.

1.     What is the objective of managing current assets efficiently?

• The objective is to minimize profitability and increase short-term obligations
• The objective is to have excess liquidity and minimize profitability
• The objective is to maximize long-term obligations and minimize liquidity
• The objective is to ensure the company has enough liquidity to meet its short-term obligations while maximizing profitability.

In which category of finance would you find the study of investor behavior and market anomalies?

• Traditional finance
• Behavioral finance
• Quantitative finance
• Personal finance

What role do financial intermediaries play in the financial market?

• connecting borrowers and lenders by accepting funds from savers and lending them to borrowers.

• accept funds from borrowers and do not lend them to other borrowers

• play no role in connecting borrowers and lenders

• only accept funds from lenders and do not lend them to borrowers

How does personal finance differ from corporate finance?

• Personal finance focuses on individual financial management, while corporate finance deals with financial decisions and activities of corporations.
• Personal finance focuses on managing personal relationships, while corporate finance focuses on financial decisions
• Personal finance deals with government funding, while corporate finance deals with financial decisions of corporations
• Personal finance focuses on physical fitness, while corporate finance focuses on financial decisions

How does finance contribute to capital budgeting decisions?

• providing financial analysis, tools, and techniques to evaluate potential investment opportunities and determine their impact on financial position.

• Finance contributes to capital budgeting decisions by ignoring the financial analysis and just going with gut feeling
• Finance contributes to capital budgeting decisions by flipping a coin to decide which projects to invest in
• Finance contributes to capital budgeting decisions by guessing the potential return on investment