Welcome to FinMan

He or she is the one responsible in making investment, financial, and dividend policy-making decisions of a firm.

• stockholder

• finance manager

• employee

• creditor

It is one of the objectives of financial management.

• maximize earnings

• maximize cash flows

• maximize the size of the firm

• maximize firm value/stock price

The choice to issue shares of long-term bonds falls uncer

• investment decision

• dividend decision

• financing decision

• none of the above

The issuance of commercial paper is in the are of

• investment decision

• dividend decision

• financing decision

• none of the above

Which of the following is true about the accountants as compared with the finance managers?

• They devote attention primarily to decision making through analysis of financial data.

• They operate on an accrual basis.

• They focus on the actual inflows and outflows of cash.

• All of the above.

Which of the following is the best measure to ensure that management decisions are in the best interest of the stockholder?

• fire managers who are inefficient

• remove management's perquisites

• tie management compensation to the level of dividend per share

• tie management compensation to the performance of the company's common stock price

In planning and managing the requirements of a firm, the financial manager is concerned with

• the mix and typeof assets, but not the type of financing utilized

• the type of financing utilized, but not the mix and type of assets

• the mix and type of assets, the type of financing utilized, and analysis in order to monitor the financial condition

• the acquisition of fixed assets, allowing someone else to plan the level of current assets required, and the market value of the share

Marginal analysis states that financial decisions should be made and actions should be taken only when

• benefits equal costs

• added benefits exceed added costs

• added benefits are greater than zero

• marginal revenue equals marginal cost

By concentrating on cash flows within a firm, the financial manager should be able to

• avoid insolvency

• prepare tax returns

• control the share price

• maintain public relations

Finance is ________.

• the art and science of managing money

• the art of merchandising products and services

• the system of verifying, analyzing, and recording business transactions

• the science of the production, distribution, and consumption of goods and services