Introduction to Financial Management

From a financial perspective, the objective of a business is to

• Satisfy key stakeholders

• Profit maximization

• Shareholders' wealth maximization

• Corporate Social Responsibility

Which of the following comes under long term decisions?

• Should we take an overdraft to cover up the cash shortages?

• Should we expand into Asia?

• Should be extend the credit period to the customers?

• Should we increase the level of stock?

Which of the following is NOT a role finance manager?

• Exploring sources of finance

• Fund allocation to different departments/projects

• Profit planning

• Preparation of financial statements (e.g income statement, balance sheet)

The conflict of interest that arise between owners and managers of PLCs are termed as

• Financial frauds

• Agency Problem

• Owner-Manager conflict

• Unethical problem

Financial decisions are concerned with which of the following?

• Making investment decisions that optimize firm value

• Management of firms' working capital

• Raising capital for growing the firm

• All of the above