PF Quiz - 1

What is the primary goal of financial management?

• Increase market share

• Minimise costs

• Maximise shareholders' wealth

• Maximise profit

Which of the following is NOT a key financial decision?

• Investment decision

• Capital structure

• Financing decision

• Marketing decision

Why is profit maximisation considered a short-term approach?

• It focuses on long-term investments

• It considers riskiness of cash flows

• It maximises shareholder value

• It ignores cash flow and timing

What does the equation A = L + E represent?

• Assets = Liabilities + Equity

• Assets = Liabilities - Equity

• Liabilities = Assets + Equity

• Equity = Assets - Liabilities

Which factor does NOT affect a company's stock price?

• Employee satisfaction

• Timing of cash flow

• Cash flow

• Riskiness of expected cash flow

What is Corporate Social Responsibility (CSR)?

• Voluntary activities for sustainable operation

• Maximising profits at all costs

• Reducing employee benefits

• Focusing solely on shareholder wealth

Which of the following is a responsibility of the financial manager?

• Marketing strategies

• Product development

• Risk management

• Human resources management

What is the difference between cash accounting and accruals accounting?

• Accruals accounting records transactions when cash is received or paid

• Accruals accounting is simpler than cash accounting

• Cash accounting records transactions when cash is received or paid

• Both methods are the same

Which of the following is a non-financial objective of a firm?

• Increasing sales revenue

• Establishing effective communication

• Reducing operational costs

• Maximising shareholder wealth

What does the term 'time value of money' imply?

• All money has the same value over time

• Money received today is worth more than money received in the future

• Money received in the future is worth more than money received today

• Future cash flows are irrelevant