Fundamentals of Corporate Finance Overview Questions with Correct Answers| New Update
with Guaranteed Success
Capital Budgeting Process of selecting projects that add company value.
Long-term Financial Plan Strategic outline for significant financial expenditures.
Reforecasting Updating financial projections during project execution.
Cash Outflows Money spent on investments or projects.
Project Delay Costs Expenses incurred due to postponed project timelines.
Accountability in Budgeting Responsibility for financial performance and decision-making.
Measurability in Budgeting Ability to quantify project performance and outcomes.
Mutually Exclusive Decisions Choices where selecting one excludes others.
Investment Risks Potential losses associated with financial projects.
Economic Profitability Long-term financial gain from investments.
Discounted Cash Flow Analysis Method assessing project cash flows over time.
Inflation Impact Devaluation of currency affecting future cash value.
Cash Flow Timing Schedule of cash inflows and outflows.
,Fixed Assets Long-term tangible assets like machinery or vehicles.
Annual Budgets Operational plans for revenue and expenses yearly.
Performance Metrics Standards used to evaluate project success.
Resource Allocation Distribution of capital and labor for projects.
Project Suitability Assessment of which projects best meet goals.
Financial Leadership Guidance from executives in budget preparation.
Competitive Marketplace Business environment with multiple competing entities.
Capital Budgeting Challenges Unique difficulties in planning long-term investments.
Project Assessment Evaluation of risks and returns before investment.
Initial Cash Outlay One-time cash payment for a project.
Periodic Outflows Series of cash payments over time.
Target Discount Rate Desired rate to discount future cash flows.
Net Cash Flow Total cash inflow minus total cash outflow.
, Payback Analysis Method focusing on time to recover investment.
Break Even Point where total revenue equals total costs.
Throughput Analysis Evaluates revenue and expenses organization-wide.
Variable Costs Costs that change with production volume.
Fixed Costs Costs that remain constant regardless of output.
Equity Residual interest in assets after liabilities.
Forecasting Cash Flows Estimating future cash inflows and outflows.
Payback Period (PB) Time taken to recover initial investment.
Internal Rate of Return (IRR) Discount rate making NPV zero.
Net Present Value (NPV) Difference between present value of inflows and outflows.
Discounted Payback Period Payback period adjusted for time value of money.
Liquidity Concern Need for cash availability for operations.
Cash Flow Forecasts Predictions of future cash inflows and outflows.
with Guaranteed Success
Capital Budgeting Process of selecting projects that add company value.
Long-term Financial Plan Strategic outline for significant financial expenditures.
Reforecasting Updating financial projections during project execution.
Cash Outflows Money spent on investments or projects.
Project Delay Costs Expenses incurred due to postponed project timelines.
Accountability in Budgeting Responsibility for financial performance and decision-making.
Measurability in Budgeting Ability to quantify project performance and outcomes.
Mutually Exclusive Decisions Choices where selecting one excludes others.
Investment Risks Potential losses associated with financial projects.
Economic Profitability Long-term financial gain from investments.
Discounted Cash Flow Analysis Method assessing project cash flows over time.
Inflation Impact Devaluation of currency affecting future cash value.
Cash Flow Timing Schedule of cash inflows and outflows.
,Fixed Assets Long-term tangible assets like machinery or vehicles.
Annual Budgets Operational plans for revenue and expenses yearly.
Performance Metrics Standards used to evaluate project success.
Resource Allocation Distribution of capital and labor for projects.
Project Suitability Assessment of which projects best meet goals.
Financial Leadership Guidance from executives in budget preparation.
Competitive Marketplace Business environment with multiple competing entities.
Capital Budgeting Challenges Unique difficulties in planning long-term investments.
Project Assessment Evaluation of risks and returns before investment.
Initial Cash Outlay One-time cash payment for a project.
Periodic Outflows Series of cash payments over time.
Target Discount Rate Desired rate to discount future cash flows.
Net Cash Flow Total cash inflow minus total cash outflow.
, Payback Analysis Method focusing on time to recover investment.
Break Even Point where total revenue equals total costs.
Throughput Analysis Evaluates revenue and expenses organization-wide.
Variable Costs Costs that change with production volume.
Fixed Costs Costs that remain constant regardless of output.
Equity Residual interest in assets after liabilities.
Forecasting Cash Flows Estimating future cash inflows and outflows.
Payback Period (PB) Time taken to recover initial investment.
Internal Rate of Return (IRR) Discount rate making NPV zero.
Net Present Value (NPV) Difference between present value of inflows and outflows.
Discounted Payback Period Payback period adjusted for time value of money.
Liquidity Concern Need for cash availability for operations.
Cash Flow Forecasts Predictions of future cash inflows and outflows.
