CFO QUIZ

The company is considering a major acquisition. What financial analysis would you perform to determine if the acquisition is a good idea?

• Analyse the potential costs and benefits of the acquisition, including any potential synergies.

• Purchase the company without conducting any financial analysis.

• Look at the target company's revenue and consider the purchases and not its expenses.

• Look at the target company's market share and consider the purchase and ignore its financial performance.

The company is facing a cash flow crisis. What steps would you take to address the problem?

• Consider cutting expenses that are not essential to the business.

• Ignoring the cash flow crisis and hoping it will resolve on its own.

• Increasing company's expenses to generate more cash flow.

• Advancing loans from personal contacts without considering the terms and interest rates.

The company is considering a new investment opportunity. How would you evaluate the potential return on investment?

• Investing all the company's funds in the opportunity without diversifying the portfolio.

• Compare the potential return on investment to the company's cost of capital. 

• Making the investment decision based on gut feeling or intuition.

• Investing in the opportunity without proper research and analysis.

The company is considering a new product or service launch. What financial analysis would you perform to determine the feasibility of the launch?

• Review the impact of the launch on the company's financial statements and ratios.

• Launching the product or service without conducting any market research or financial analysis.

• Launching the product or service at a price point that is significantly higher than the competition without proper analysis.

• Taking the potential risk and uncertainty associated with the launch.

The process of forecasting a company's future financial performance is known as:

• Budgeting

• Forecasting

• FInancial Modelling

• Financial Analysis

Which is the ultimate concern of a CFO?

• receiving the maximum profit

• effective management of all the business

• to arrange the funds

• to acquire and utilise every aspect of financial resources

What is the primary function of a CFO in relation to the company's shareholders?

• Communicating with shareholders

• Representing the shareholders in board meetings

• Managing the company's investments to increase shareholder value

• Representing the company in legal matters

Which of the following is not true about assets and liabilities?

• Assets  are responsible for generating cash flow in a business.

• Assets are non-depreciable in nature while liabilities are depreciable.(Depreciable means gradually reduces in value over time)

• Assets are items possessed by a business that will provide it benefits in future.

• Liabilities are items that are obligations for a business.

A shopkeeper sold an article for Rs. 2500. If the cost price of the article is 2000, find the profit percent.

• 29%

• 23%

• 25%

• 27%

What is the purpose of a budget?

• To plan and control a company's financial performance

• To forecast a company's future financial performance

• To evaluate a company's financial performance

• All of the above