Financial Management 1

What can you understand about Financial Management?

• Financial management means planning, managing, directing and monopoly the financial activities such as procurement of debts

• Financial management means planning, managing, directing and controlling the financial activities such as procurement of funds

• Financial management means planning, managing, directing and controlling the financial activities such as procurement of debts

• Financial management means planning, managing, stabilizing and controlling the financial activities such as procurement of funds

Select the correct answer(s) for the terms of Basic Economy

• Utility: Is the satisfaction that one achieves from consuming a goods or services and its concept based on the individual itself

• Economic efficiency: Is the measure of inputs obtained with a given set of outputs. The lesser the amount of wastage, the better

• Scarcity: Is when the amount of production is limited and finite (labor, land & capital) which affects the demand

• Elasticity: Is the change in quality of the goods associated with a change in the prices

• Opportunity Cost: Is the value or amount of the next-highest-valued substitute use of that resource.

Gross Domestic Product(GDP) is a _________ measure of the market value of all the final goods and services produced in a period of time

What are the advantages of Cost of Debt(s) ?

• More tax efficient than equity financing

• Lenders have a claim to equity in the company

• Ownership interest is not diminished by the debt

• Principal and interest re-payments are finalized

Pick the correct answer(s) regarding the concept of ROI

• Compare investments returns and costs by constructing a ratio or percentage

• ROI ratio < 0% - investment return more than cost

• Many competitors, many choices factor of investment higher ROI is better choice

• Involves magnitude and timing of investments (gain and lose)

The payback period can be described by Payback Period

• = (p + n) / (p - n_y)

  = 1 + n_y - n/p (unit: years)

• = (p + n) / (p - n_y)

  = 1 + n_y - n/p (unit: years)

• = (p - n) / (p + n_y)

  = 1 + n_y - n/p (unit: years)

• = (p - n) / (p + n_y)

  = 1 - n_y + n/p (unit: years)

What are the technique(s) for Discounting Method of Investment Appraisal ?

• Accounting rate of return

• Net past Value

• Internal Rate of Return

• Net worth balancing method

Capital Allowances can be described as

• the practice of allowing a company to get tax evasion on tangible capital expenditure by allowing it to be expensed against its annual past-tax expenditure

• the practice of allowing a company to get tax relief on tangible capital expenditure by allowing it to be expensed against its annual pre-tax expenditure

• the practice of allowing a company to get tax relief on tangible capital expenditure by allowing it to be expensed against its annual pre-tax income

• the practice of allowing a company to get tax evasion on tangible capital expenditure by allowing it to be expensed against its annual past-tax income

The international Monetary Fund (IMF) was established from post World War 2 by Allied Government on December 27, 1945 to form an Agreement. What is the name of the historic agreement?

• The Hempshire Agreement

• The Switzerland Agreement

• The Bretton Woods Agreement

• The Auckland Agreement

The IMF's major objective(s) are

• To promote international monetary cooperatioin

• To facilitate the expansion and balanced growth of international trade

• To promote exchange-rate stability

• To establish a bilateral system of payments