BA 323 ANDREW DO , EXAM 1
QUESTIONS AND CORRECT ANSWERS.
VERIFIED 2025/2026.
Financial Analyst - ANS prepares the firms financial plans and budgets. other duties include
financial forecasting, performing financial comparisons and working closely with accounting
capital expenditures manager - ANS evaluates and recommends proposed long-term
investments. may be involved in the financial aspect of implementing approved invesments
project finance manager - ANS Arranges financing for approved long=term investments.
coordinates consultants, investment bankers and legal consel
cash manager - ANS maintains and controls the firms daily cash balances. Frequently
manages the firms cash collection and disbursement activities and short-term investments and
coordinates short-term borrowing and banking relationships
credit analyst/manager - ANS administers the firms credit policy by evaluating credit
applications, extending credit and monitoring and collecting accounts receivable
pension fund manager - ANS oversees or manages the assets and liabilities of the employees
pension fund
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, foreign exchange manager - ANS manages specific foreign operations and the firms exposure
to fluctuations in exchange rates
Goals of the firm - ANS 1. Maximize shareholders wealth = maximize the stockholder price,
only take actions that are expected to increase the wealthh of the shareholders
2. Maximize Profit
3. Interest of stakeholders
Maximize the shareholders wealth - ANS - you can measure this by the stockholders share
price
- they must satisfy their customers, employees and suppliers ( the stakeholders groups, they
have to create great relations)
dividends - ANS What stockholders receive come from firms profits
What is the key variable that managers must consider when making a business decision? -
ANS Return ( cash flow) and risks
Earnings Per Share ( EPS) - ANS the amount earned during the period on behalf of each
outstanding share of common stock, calculated by dividing the periods total earnings available
for the firms common stockholders by the number of common stock outstanding
Does profit maximization lead to the highest possible share price? - ANS NO.
1. timing -
2. Cash flows
3. Risk-
Timing - ANS The receipt of funds of sooner rather than later is preferred ( timing of
reinvesting matters)
Cash Flows - ANS -profits does not necessarily result in cash flows available for stockholders.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
QUESTIONS AND CORRECT ANSWERS.
VERIFIED 2025/2026.
Financial Analyst - ANS prepares the firms financial plans and budgets. other duties include
financial forecasting, performing financial comparisons and working closely with accounting
capital expenditures manager - ANS evaluates and recommends proposed long-term
investments. may be involved in the financial aspect of implementing approved invesments
project finance manager - ANS Arranges financing for approved long=term investments.
coordinates consultants, investment bankers and legal consel
cash manager - ANS maintains and controls the firms daily cash balances. Frequently
manages the firms cash collection and disbursement activities and short-term investments and
coordinates short-term borrowing and banking relationships
credit analyst/manager - ANS administers the firms credit policy by evaluating credit
applications, extending credit and monitoring and collecting accounts receivable
pension fund manager - ANS oversees or manages the assets and liabilities of the employees
pension fund
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, foreign exchange manager - ANS manages specific foreign operations and the firms exposure
to fluctuations in exchange rates
Goals of the firm - ANS 1. Maximize shareholders wealth = maximize the stockholder price,
only take actions that are expected to increase the wealthh of the shareholders
2. Maximize Profit
3. Interest of stakeholders
Maximize the shareholders wealth - ANS - you can measure this by the stockholders share
price
- they must satisfy their customers, employees and suppliers ( the stakeholders groups, they
have to create great relations)
dividends - ANS What stockholders receive come from firms profits
What is the key variable that managers must consider when making a business decision? -
ANS Return ( cash flow) and risks
Earnings Per Share ( EPS) - ANS the amount earned during the period on behalf of each
outstanding share of common stock, calculated by dividing the periods total earnings available
for the firms common stockholders by the number of common stock outstanding
Does profit maximization lead to the highest possible share price? - ANS NO.
1. timing -
2. Cash flows
3. Risk-
Timing - ANS The receipt of funds of sooner rather than later is preferred ( timing of
reinvesting matters)
Cash Flows - ANS -profits does not necessarily result in cash flows available for stockholders.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
