business finance

Question 1

it deals with the decisions that are supposed to maximize shareholder’s wealth

Answer 1

Financial Management

Question 2

refers to effective and efficient planning, organizing, directing, and controlling of financial activities and processes of an organization

Answer 2

financial management

Question 3

Financial management and financial managers play a crucial role in making financial decisions and exercising control over finances in the organization. They make use of techniques like ratio analysis, financial forecasting, profit and loss analysis, etc,

Answer 3

Financial decisions and controls

Question 4

The finance managers are responsible for the planning of financial activities and resources in the organization. To this end, they use available data to understand the needs and priorities of the organization, as well as the overall economic situation and make plans and budgets for the same purpose

Answer 4

Financial Planning

Question 5

It is the responsibility of financial management to estimate the capital requirements of the organization from time to time, determines the capital structure and composition and makes the choice of source of funding for the capital needs.

Answer 5

Capital Management

Question 6

Financial management ensures that all financial resources of the organizations are used and invested effectively and efficiently so that the organization is profitable, sustainable, and viable in the long-run

Answer 6

Allocation and Utilization of financial resources

Question 7

It is extremely important for organizations to have sufficient working capital and cash flow to meet their operations and emergencies. Financial management tracks account payable and receivable to ensure there is sufficient cash flow available at all times.

Answer 7

Cash Flow Management

Question 8

The decisions on how the surplus or profits of the organizations is utilized is taken by the financial managers of the organizations. They decide if dividends should be distributed and how much as well as the proportion of profits must be retained and ploughed back into the business

Answer 8

Disposal of surplus

Question 9

Financial management maintains all necessary reports related to the finance of the organization and uses this as the database for forecasting and planning financial activities

Answer 9

Financial Reporting

Question 10

Sound financial management prepared the organization to forecast risks, put in place mitigation plans as well as to meet unforeseen risks and emergencies effectively

Answer 10

Risk management

Question 11

Its goal is to maximize the value of shares of stocks.

Answer 11

Financial Management

Question 12

They are responsible for making the decisions for the company that would lead towards shareholders’ wealth maximization.

Answer 12

Managers

Question 13

4 vp of an organization

Answer 13

vp for marketing, finance, production, administration

Question 14

2 owners and 5 managers of an organization

Answer 14

Shareholders, board of directors
president or ceo, vps

Question 15

It is the highest policy making body in a corporation. Its primary responsibility is to ensure that the corporation is operating to serve the best interest of the stockholders.

Answer 15

Board of directors

Question 16

They are the owners or investors in the firm

Answer 16

Shareholders

Question 17

They set policies on investments, capital structure, and dividend policies

Answer 17

Board of directors

Question 18

They approve company’s strategies, goals, and budgets. They also appoint and remove members of the top management including the president

Answer 18

Board of directors

Question 19

They determine top management’s compensation. They also approve the information and other disclosures reported in the financial statements

Answer 19

Board of directors

Question 20

They oversee the operations of a company and ensure that the strategies as approved by the board are implemented as planned

Answer 20

President

Question 21

They perform all areas of management: planning, organizing, staffing, directing, and controlling

Answer 21

President

Question 22

They represent the company in professional, social, and civic activities

Answer 22

President

Question 23

they formulate marketing strategies and plans. they also direct and coordinate company sales

Answer 23

vp for marketing

Question 24

they perform market and competitor analysis. they also analyze and evaluate the effectiveness and cost of marketing methods applied.

Answer 24

vp for marketing

Question 25

they conduct or direct research that will allow the company identify new marketing opportunities, e.g. variants of the existing products/services already offered in the market

Answer 25

vp for marketing

Question 26

they promote good relationships with customers and distributors

Answer 26

vp for marketing

Question 27

they ensure production meets customer demands

Answer 27

vp for production

Question 28

they identify production technology/process that minimizes production cost and make the company cost competitive

Answer 28

vp for production

Question 29

they come up with a production plan that maximizes the utilization of the company’s production facilities. they also identify adequate and cheap raw material suppliers

Answer 29

VP FOR PRODUCTION

Question 30

they coordinate the functions of administration, finance, and marketing departments

Answer 30

vp for administration

Question 31

they assist other departments in hiring employees. they provide assistance in payroll preparation, payment of vendors and collection of receivables

Answer 31

vp for administration

Question 32

they determine the location and the maximum amount of office space needed by the company

Answer 32

vp for administration

Question 33

they identify means, processes, or systems that will minimize the operating costs of the company

Answer 33

vp for administration

Question 34

they fund long term investments (such as company expansions) and working capital which deals with the day to day operations of the company

Answer 34

vp for finance

Question 35

they determine the type of investment for the firm. they also deal with the daily operations of the company. and they develop policies on dividends

Answer 35

vp for finance