Topic 1 : Intro to financial managament

What is the goal of the firm according to the text?

• Cost minimization

• Revenue maximization

• Shareholder's wealth maximization

• Profit maximization

Which of the following is NOT a category of finance mentioned in the text?

• Personal finance

• Public finance

• Government finance

• Corporate finance

What are the important parties in the financial environment according to the text?

• Financial market and financial institutions

• Stock market and real estate market

• Banks and insurance companies

• Government and non-profit organizations

What is the main difference between profit maximization and shareholder's wealth maximization?

• Profit maximization ignores risk and uncertainty, while shareholder's wealth maximization takes them into account

• Profit maximization emphasizes the timing of returns, while shareholder's wealth maximization ignores it

• Profit maximization is more relevant for non-profit organizations, while shareholder's wealth maximization is more relevant for for-profit organizations

• Profit maximization focuses on long-term goals, while shareholder's wealth maximization focuses on short-term goals

Which of the following is NOT an example of financial activities mentioned in the text?

• Building additional stores

• Borrowing of funds

• Investing in stocks

• Buying a house

What is the function of financial institutions according to the text?

• To manage government finances

• To regulate the stock market

• To channel savings into loans or investments

• To provide financial advice to individuals and businesses

Why is shareholder's wealth maximization considered more relevant than profit maximization according to the text?

• Because it emphasizes the timing of returns

• Because it offers a clear relationship between financial decisions and stock price

• Because it focuses on short-term financial stability

• Because it ignores risk and uncertainty

What is your lecturer name that teach this subject?

• Aina Farahana

• Aina Farhana

What subject is this?

• Financial Management (FIN3133N)

• Financial Accounting

  (ACC3133N)

Define the meaning of finance.