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Strategic Corporate Finance primarily focuses on:

• Routine accounting procedures

• Short-term budgeting decisions

• Long-term financial decisions aligned with corporate strategy

• Preparation of financial statements

Which of the following best defines Strategic Corporate Finance?

• Management of daily cash transactions

• Financing decisions aimed at maximizing shareholder value

• Tax computation and compliance

• Cost accounting techniques

A key characteristic of Strategic Corporate Finance is:

• Emphasis on historical data

• Short-term profit maximization

• Alignment of financial decisions with business strategy

• Focus on bookkeeping accuracy

Strategic financial decisions are usually:

• Reversible and low-risk

• Routine and repetitive

• Long-term and difficult to reverse

• Limited to working capital

Financial policy refers to:

• Rules for preparing financial statements

• Guidelines for managing day-to-day expenses

• Principles governing financing, investment, and dividend decisions

• Government regulations on finance

Financial policy is important because it:

• Eliminates financial risk

• Ensures uniform accounting practices

• Provides direction for financial decision-making

• Guarantees profits

Strategic planning in finance mainly aims at:

• Minimizing tax liability

• Achieving long-term organizational objectives

• Increasing clerical efficiency

• Reducing accounting costs

Which of the following is not a feature of strategic financial planning?

• Long-term orientation

• Integration with corporate goals

• Static and inflexible approach

• Consideration of external environment

Financial planning can be defined as:

• Estimation of profits only

• Forecasting and arranging funds to achieve business objectives

• Preparation of financial statements

• Allocation of past earnings

The primary objective of financial planning is to:

• Avoid taxation

• Ensure availability of adequate funds

• Eliminate financial risk

• Maximize accounting profits