Financial Management Quiz

What is the primary goal of financial management?

• To earn profit

• To increase its own value as an economic entity

• To improve the quality of life in the community

What does the Valuation Approach in financial management aim to maximize?

• Profit alone

• Overall value of the firm

• Shareholders' wealth

What are the short term sources of funds mentioned?

• Bank overdrafts, factoring, commercial papers

• Ordinary share capital, preference share capital

• Long term loans and leases

What is a characteristic of a partnership?

• Unlimited liability

• Limited life

• Both a and b

What is the main advantage of a corporation?

• Limited liability for shareholders

• Easier to dissolve than a partnership

• Profits are shared among partners

What is an agency relationship in financial management?

What is the role of financial managers in estimating capital requirements?

What are the most commonly recognized and frequently used financial services offered by banks?

What services do investment banks specialize in?

What types of investment services do brokerage firms provide?