FINMAN REVIEWER

What is the primary goal of financial management in a corporation?

• Minimizing Debt

• Minimizing Shareholder Wealth

• Expanding Market Share

• Increase Employee Salaries

Which area of financial management focuses on the management of a company's investments?

• Corporate Finance

• Capital Budgeting

• Risk Management

• Cash Flow

Who typically makes financial decisions in a corporation?

• Chief Financial Officer

• Chief Operations Officer

• Marketing Manager

• Project Manager

Which of the following activities is part of financial management

• Inventory Tracker

• Strategic Investment Decision-Making

• Research & Development

• Marketing Expansion

What is the purpose of the agency theory in financial management?

• To establish accounting principles

• To ensure that managers make decisions in the best interest of shareholders

• To increase company assets

• To maximize employee welfare

Which market is associated with the trade of stocks, bonds, and other long-term financial instruments?

• Money market

• Capital market

• Foreign exchange market

• Derivatives market

What type of financial instrument provides ownership rights in a company?

• Bond

• Stock

• Treasury Bill

• Certificate of Deposit

In which market do companies raise new capital by issuing stocks or bonds?

• Primary Market

• Secondary Market

• Money Market

• Derivatives Market

Which institution serves as a middleman between borrowers and lenders?

• Commercial Bank

• Investment Bank

• Hedge Fund

• Credit Bureau

A market in which securities are bought and sold after their original issue is known as a:

• Primary

• Derivatives

• Secondary

• Capital