FINANCIAL MANAGEMENT THEORY AND
PRACTICE 16TH EDITION BY BRIGHAM 2026
REVISION WORKBOOK COMPREHENSIVE
NOTES A+
◉ What are the three major financial decisions in Financial
Management? Answer: Financing Decision, Investment Decision,
Dividend Decision.
◉ What does the Financing Decision involve? Answer: Deciding
where to get funds, either through debt or equity.
◉ What is the focus of the Investment Decision? Answer: Choosing
the best investments by analyzing risk, cost, and expected return.
◉ What is the Dividend Decision? Answer: Deciding how much
profit to distribute to shareholders and how much to retain.
◉ List some functions of Financial Management. Answer: Estimating
capital requirements, choosing sources of funds, making investment
plans, managing cash, managing financial risks, allocating profits.
, ◉ Why is Financial Management important? Answer: It helps in
financial planning, acquiring funds, ensuring proper use of funds,
supporting critical financial decisions, improving profitability,
increasing company value, providing economic stability, and
encouraging savings.
◉ What are the objectives of Financial Management? Answer: Profit
maximization, wealth maximization, liquidity management, proper
mobilization of funds, meeting financial obligations, and improving
efficiency.
◉ What are the Five A's of Financial Management? Answer:
Anticipation of Funds, Acquisition of Funds, Allocation of Funds,
Appropriation of Funds, Assessment of Plans and Policies.
◉ What is Capital Budgeting? Answer: Long-term investment
decisions.
◉ What is the role of the CFO? Answer: Manages financial activities
including accounting, treasury, capital budgeting, and investor
relations.
◉ What is a Financial Statement? Answer: A summary of a
company's assets, liabilities, equity, revenues, and expenses that
shows its financial position, performance, and cash flows.
PRACTICE 16TH EDITION BY BRIGHAM 2026
REVISION WORKBOOK COMPREHENSIVE
NOTES A+
◉ What are the three major financial decisions in Financial
Management? Answer: Financing Decision, Investment Decision,
Dividend Decision.
◉ What does the Financing Decision involve? Answer: Deciding
where to get funds, either through debt or equity.
◉ What is the focus of the Investment Decision? Answer: Choosing
the best investments by analyzing risk, cost, and expected return.
◉ What is the Dividend Decision? Answer: Deciding how much
profit to distribute to shareholders and how much to retain.
◉ List some functions of Financial Management. Answer: Estimating
capital requirements, choosing sources of funds, making investment
plans, managing cash, managing financial risks, allocating profits.
, ◉ Why is Financial Management important? Answer: It helps in
financial planning, acquiring funds, ensuring proper use of funds,
supporting critical financial decisions, improving profitability,
increasing company value, providing economic stability, and
encouraging savings.
◉ What are the objectives of Financial Management? Answer: Profit
maximization, wealth maximization, liquidity management, proper
mobilization of funds, meeting financial obligations, and improving
efficiency.
◉ What are the Five A's of Financial Management? Answer:
Anticipation of Funds, Acquisition of Funds, Allocation of Funds,
Appropriation of Funds, Assessment of Plans and Policies.
◉ What is Capital Budgeting? Answer: Long-term investment
decisions.
◉ What is the role of the CFO? Answer: Manages financial activities
including accounting, treasury, capital budgeting, and investor
relations.
◉ What is a Financial Statement? Answer: A summary of a
company's assets, liabilities, equity, revenues, and expenses that
shows its financial position, performance, and cash flows.
