FIN 2164 Final Exam 2023 question and answers

What is corporate finance? - correct answers The collection of finance functions and jobs within companies. True or False: Forecasts are used as the basis for budgets for future periods. - correct answers TRUE; they're used for capital spending budgets, purchasing contracts, sales targets, and goals for annual performance reviews. True or False: Forecasts are also used to determine whether additional capital is required for the business (and how much). - correct answers TRUE What are the functions of corporate finance? - correct answers - Planning and Budgeting - Project Analysis - Business Analysis - Business Development - Treasury Functions - Cash Management and Banking Relationships - Raising Capital - Investor Relations Risk Management and Hedging - Taxes - Asset Management What are the two types of forecasts? - correct answers *Upside case* -- what the business looks like if the future is better than expected *Downside case* -- what the business looks like if the future is worse than expected Forecasts are part of ________ and _________. - correct answers planning, budgeting