Finance

What is the primary goal of financial management in a corporation?

• Maximizing employee satisfaction

• Maximizing shareholder wealth

• Minimizing operational costs

• Increasing market share

Which of the following measures the risk-adjusted return of an investment?

• Net Present Value (NPV)

• Sharpe Ratio

• Internal Rate of Return (IRR)

• Payback Period

What is the primary function of a financial manager in a company?

• Developing marketing strategies

• Overseeing daily operations

• Conducting employee training

• Managing financial resources

Which financial metric is commonly used to evaluate a company's profitability?

• Price to Earnings Ratio (P/E)

• Debt to Equity Ratio

• Return on Equity (ROE)

• Current Ratio

What does the term 'liquidity' refer to in financial management?

• The total amount of assets owned

• The ease of converting assets into cash

• The ability to pay long-term debts

• The profitability of a company

Which of the following is a common method for assessing the value of an investment?

• Asset Turnover Ratio

• Market Capitalization

• Return on Investment (ROI)

• Discounted Cash Flow (DCF)

What is the purpose of a budget in financial management?

• To forecast future financial performance

• To track employee performance

• To determine market trends

• To manage inventory levels

Which financial statement provides a snapshot of a company's assets, liabilities, and equity at a specific point in time?

• Income Statement

• Cash Flow Statement

• Balance Sheet

• Statement of Retained Earnings