Introduction to Financial management

Below is the function of financial manager except

• To coordinate and control with other departments

• To deal with financial markets

• To promote and market product

• To forecast and plan for the organisation

What are the 2 main goals of a firm?

To achieve the goal of profit maximization for each alternative being considered, the financial manager would select the one that is expected to result in the highest monetary return.

• TRUE
• FALSE

The wealth of the owners of a corporation is represented by _____________.

• share value
• profits
• cash flow
• earnings per share.

All of the answer below are form of business organization except:

• Venture

• Sole proprietorship

• Partnership

• Corporation

Major goal of the firm are

• Stockholder wealth maximization , Maximize sale

• Social responsibility, Avoid financial distress

• Social responsibility, Stockholder wealth maximization

• Stockholder wealth maximization, Minimize cost

Agency problem happen when

• Agent has follow the rule

• Agent has different goal and interest

• Agent had complete the task

• Agent had define well the task

Finance functions are

• Planning for funds

• Raising of funds

• Allocation of funds

• All of the above

The objective of wealth maximization takes into account

• Amount of returns expected
• Timing of anticipated returns
• Risk associated with uncertainty of returns
• All of the above

The ___________________ is a report of the revenue, expenses, and net income or net loss over an accounting period.

• income statement

• accounts payable

• owner's equity

• financial statement