Conflicts and Concepts

Which capital is Financial Management's chief concern?

• Human Capital

• Intellectual Capital

• Investments

• Financial Capital

Which one does not apply?

Financial Management helps organizations accomplish their...

• Goals

• Strategy

• Dreams

• objectives

Strategic Analysis involves...

• Developing a theoretically informed understanding of the entity's operating environment

• Increasing the organization's capacity to deploy and redeploy its employees intelligently

Accounting information and cash flow information differ due to

• Accrual basis of accounting

• Tax payments

• Nothing, they are the same

• Depreciation

Which one is not a characteristic of Homo economicus?

• Perfect self-interest

• Perfect rationality

• Perfect Reasoning

• Perfect Information

Agency problems will arise in a

• Sole proprietorship

• Partnership

• Any type of separate legal entity and sole proprietorship with an additional manager

• Non-Profit Organization

Value of money changes over time due to interest and inflation

• True

• False

Merton's 5 identified causes of unintended consequences include

• Error and Ignorance

• Complex Values and immediacy of interest

A bias arising from a person’s unwarranted belief in his or her ability to make decisions using his or her intuitive reasoning, judgment, and cognitive abilities.

• Representative bias

• Optimism bias

• Overconfidence bias

• Confirmation bias

Discount rate of 14%, Find the value of x:

PV= 1000(x)^-2

• x= 0.14

• x= 1.4

• x= 1.014

• x= 1.14