Corporate Finance - midterm examination

What is the primary role of corporate finance departments?

• Managing marketing strategies

• Developing product designs

• Handling human resources

• Making investment decisions

What is the main focus of capital budgeting in corporate finance?

• Investing in company projects

• Raising capital through equity

• Managing working capital

• Managing current assets

Where can companies source capital through debt or equity in corporate finance?

• Commercial banks

• Venture capitalists

• Non-profit organizations

• Government agencies

What is the main responsibility of corporate finance departments in managing short-term finances?

• Managing shareholder dividends

• Maximizing long-term investments

• Ensuring enough liquidity for ongoing operations

• Optimizing capital structure

Which position is a potential opportunity in the field of corporate finance?

• Marketing coordinator

• Financial analyst

• Human resources manager

• Product development engineer

What is the primary focus of working capital management in corporate finance?

• Raising capital for business expansions

• Managing assets and liabilities to operate efficiently

• Deciding how to fund projects/operations

• Investing in company projects

What is the potential impact of poor capital budgeting in corporate finance?

• Decreased shareholder dividends

• Increased financing costs

• Reduced operating capacity

• All of the above

What is the specialized area of finance that corporate finance focuses on?

• Accounting and investment decisions

• Financial planning

• Investment banking

• Personal finance

What is the primary goal of corporate finance in using debt and/or equity?

• Optimizing capital structure

• Minimizing financing costs

• Meeting company's goals and objectives

• Maximizing shareholder dividends

What is the role of a treasurer in corporate finance?

• Managing company's cash flows

• Sourcing capital through debt or equity

• Managing current assets

• Managing working capital