STRATEGIC CORPORATE FINANCE II

Which of the following best defines Strategic Financial Decision-Making?

• Routine short-term budgeting

• Aligning financial goals with overall corporate strategy

• Bookkeeping and accounting

• Dividend declaration only

The interface of financial policy and strategic management focuses on:

• Audit compliance

• Linking capital allocation with corporate goals

• Tax minimization

• Reducing dividend payouts

The role of a CFO in strategic management primarily involves:

• Supervising daily operations

• Ensuring sustainable value creation

• Handling recruitment

• Managing sales teams

Financial strategy at different hierarchy levels helps in:

• Reducing marketing costs

• Linking operational and strategic goals

• Managing employee morale

• None of these

A company’s financial policy aims to:

• Ensure liquidity only

• Balance profitability, growth, and risk

• Increase short-term cash

• Reduce long-term investment

Sustainable growth means:

• Growth achieved without external borrowing

• Growth aligned with internal financial capacity

• Growth achieved by increasing equity only

• Growth through cost-cutting

Which of the following is NOT a financial goal?

• Profit maximization

• Shareholder wealth maximization

• Market expansion

• Risk reduction

Strategic financial decisions are guided by:

• Accounting standards

• Organizational mission and vision

• Sales targets

• Dividend payout ratio

Financial planning integrates with strategy by:

• Matching funding with long-term objectives

• Monitoring employee attendance

• Setting HR budgets

• Managing sales territories

CFO’s contribution to value creation involves:

• Operational budgeting only

• Strategic financing and capital allocation

• Reducing production cost

• Marketing efficiency