Financial Management

What is the goal of strategic financial management?

• To maximize the market value of a company and achieve planned objectives

• To fluctuate the market value of a company and confuse planned objectives

• To minimize the market value of a company and avoid planned objectives

• To ignore the market value of a company and not achieve planned objectives

What is the process of evaluating the amount of money necessary and determining the competition known as?

• Finance Functions

• Financial Management

• Financial Planning

• Role of Financial Manager

What is the main function of a financial manager related to understanding capital markets?

• Clear understanding of risks associated with trading stocks and debentures

• Clear understanding of risks associated with investing in real estate

• Clear understanding of risks associated with starting a new business

• Clear understanding of risks associated with international trade

What is the importance of financial planning related to maintaining financial stability?

• By keeping a fair balance between outflow and inflow of cash

• By keeping a high outflow of cash and a low inflow of cash

• By increasing the outflow of cash and decreasing the inflow of cash

• By decreasing the outflow of cash and increasing the inflow of cash

What is the role of financial manager in relation to raising funds?

• To ensure enough cash and liquidity to meet business obligations

• To invest all funds in risky ventures

• To avoid raising any funds for the business

• To keep all funds in a savings account

What is the process of managing the finances of a company to meet its strategic goals known as?

• Role of Financial Manager

• Finance Functions

• Financial Planning

• Financial Strategy

What is the objective of financial planning related to determining capital requirements?

• To consider both short-term and long-term capital requirements

• To only consider short-term capital requirements

• To only consider long-term capital requirements

• To ignore capital requirements

What is the importance of financial planning related to the development of growth and expansion plans?

• To aid in the development of growth and expansion plans

• To hinder the development of growth and expansion plans

• To ignore the development of growth and expansion plans

• To delay the development of growth and expansion plans

What is the main function of a financial manager related to profit planning?

• To ignore a company's profits

• To waste a company's profits

• To hide a company's profits

• To ensure the proper use of a company's profits

What is the role of financial manager in relation to allocation of funds?

• To allocate funds in such a manner that they are optimally used

• To allocate funds randomly without any plan

• To not allocate any funds

• To allocate all funds to a single project