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

• jwsn

Answer explanation

To earn profit, to increase its own value as an economic entity; and 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

Answer explanation

valuation edi value hinahanap

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

• Less government control

What is an agency relationship in financial management?

What is the role of financial managers in accounting?

What is the primary goal of shareholders?

• Wealth maximization

• Profit maximization

• Social responsibility

What are the types of financial institutions mentioned?

• Commercial banks, insurance companies

• Investment banks, brokerage firms

• All of the above

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