FINANCIAL MANAGEMENT FOR DECISION
MAKERS FINAL PAPER TESTED QUESTIONS
WITH VERIFIED ANSWERS COMPLETE
STUDY SHEET
●● What are the three fundamental decisions in financial management?
Answer: Capital Budgeting Decision, Financing Decision, Working
Capital Management Decisions.
●● What is the role of the financial manager?
Answer: To manage cash flows and ensure the company generates
sufficient cash inflows to meet obligations.
●● What is capital budgeting?
Answer: The process of deciding which productive assets the firm
should buy.
●● What does the financing decision involve?
Answer: Determining how the firm will finance or pay for its assets.
●● What is working capital management?
Answer: Managing day-to-day financial matters of the firm.
, ●● Why is financial management critical for business sustainability?
Answer: Every business decision has financial implications that affect
long-term viability.
●● What is the first step in the decision-making process?
Answer: Identify what we are trying to achieve (Goals).
●● What information is needed for effective decision-making?
Answer: Relevant financial and accounting information.
●● What are the consequences of different alternatives in decision-
making?
Answer: Evaluating the potential outcomes of each choice.
●● What is the importance of accounting in financial management?
Answer: Accounting provides the necessary information for decision-
making and evaluating business plans.
●● What is financial accounting?
Answer: The preparation and presentation of financial statements for
external users.
MAKERS FINAL PAPER TESTED QUESTIONS
WITH VERIFIED ANSWERS COMPLETE
STUDY SHEET
●● What are the three fundamental decisions in financial management?
Answer: Capital Budgeting Decision, Financing Decision, Working
Capital Management Decisions.
●● What is the role of the financial manager?
Answer: To manage cash flows and ensure the company generates
sufficient cash inflows to meet obligations.
●● What is capital budgeting?
Answer: The process of deciding which productive assets the firm
should buy.
●● What does the financing decision involve?
Answer: Determining how the firm will finance or pay for its assets.
●● What is working capital management?
Answer: Managing day-to-day financial matters of the firm.
, ●● Why is financial management critical for business sustainability?
Answer: Every business decision has financial implications that affect
long-term viability.
●● What is the first step in the decision-making process?
Answer: Identify what we are trying to achieve (Goals).
●● What information is needed for effective decision-making?
Answer: Relevant financial and accounting information.
●● What are the consequences of different alternatives in decision-
making?
Answer: Evaluating the potential outcomes of each choice.
●● What is the importance of accounting in financial management?
Answer: Accounting provides the necessary information for decision-
making and evaluating business plans.
●● What is financial accounting?
Answer: The preparation and presentation of financial statements for
external users.
