Fin2603 Assignment 1 semester 1 2023 (Questions and Answers A + Graded 100% verified)

Fin2603 Assignment 1 semester 1 2023 (Questions and Answers A + Graded 100% verified) ed 100% verified) 1. One method often used by companies to ensure that management decisions are in the best interest of the shareholders is to ... A. have a shareholder meeting once a year. B. threaten to fire managers who do not performing adequately. C. tie management compensation to the performance of the company share price D. tie management compensation to the level of earnings per share. 2. The long-term financial goal of the firm may be achieved by .. A. maximising revenue and minimising expenses B. minimising the cost of capital and maximising the internal rate of return (IRR). C. maximising the assets relative to the liabilities D. accelerating cash inflows 3. Which of the following is not a responsibility of the treasurer of an organisation? A. Raising the necessary funds for the organisation in order to be sustainable and grow. B. Doing the tax payments for the organisation C. Conducting and executing capital budgeting activities D. Formulating and the credit policy of the organisation 4. The best way in which a firm may improve its profitability would involve .. A. reducing expenditure on non-core business activities. B. employing fewer permanent staff and using contract workers during peak periods C. increasing sales by means of improved marketing D. selling all its non-core assets 5. What is the main function of a financial manager? A. To prevent bad debts. B. To ensure liquidity and solvency. C. To increase the value of ordinary shares. D. To earn returns greater than those of the competitors. 6. Finance can be defined as the ... A. system of debits and credits B. art and science of managing money. C. art of merchandising products and services D. science of the production, distribution and consumption of wealth. 7. The part of finance concerned with design and delivery of advice and financial products to individuals, businesses and the government is called . A. managerial finance B. financial advice C. financial services. D. financial planning. 8. Which stakeholders have the first claim on assets when an organisation enters bankruptcy? A. Creditors B. Top management C. Debtors D. Shareholders 9. If the company's managers are NOT owners of the company, they are .. A. outsiders B. traders. C. dealers. D. agents 10. During periods where the consumer price index (CPI) is expected to decrease, a retail firm will have to .. A. relax credit standards due to a decline in sales, a decrease in bad debts and a slowdown of cash outflow. B. expand due to declining interest rates, an increase in sales and improved feasibility of investment opportunities. C. apply credit standards more strictly due to declining interest rates, increase in sales, but a slowdown of cash inflow. D. budget more conservatively as a result of rising interest rates, a decline in sales and an increase in bad debts. 11. Which of the following is a career opportunity in managerial finance? A. Investment management B Real estate and insurance C Capital expenditures management D. Personal financial planning 12. The primary short-term financial goal of the firm may be best achieved by ... A. maximising revenue and minimising expenses. B. minimising the cost of capital and maximising the internal rate of return (IRR). C. increasing expenses in order to reduce the firm’s tax liability. D. accelerating cash inflows and delaying cash outflows. 13. Which source of the following funds are the most likely to be relayed on by small firms ? A. Long-term debt B. Equity C. Preference shares D. Short-term debt