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Finance Dr. Poliquit > Chapter 1 > Flashcards

Chapter 1 Flashcards

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1
Q

is an area of financial decision-making harmonizing individual motives and enterprise goals.

A

Financial Management

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2
Q

It is mainly concerned with the effective fund management in business.

A

Financial Management

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3
Q

deals with the procurement of funds and their effective utilization in the business as an application of general managerial principles in financial decision-making.

A

Financial Management

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4
Q

the art and science of managing money

A

Finance

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5
Q

study of how to make good decisions that involve money.

A

finance

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6
Q

Functions of finance

A

Analysis
Decision Making

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7
Q

how a firm should make good financial decisions

A

Corporate Finance

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8
Q

how an individual should make good financial decisions

A

Personal Finance

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9
Q

How we should make good decisions involving financial investments

A

Investments and Portfolio Management

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10
Q

It is about how the financial markets should be organized and how financial institutions should be managed in such a way that they provide the most benefit to the economy

A

Financial Markets and institutions

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11
Q

What are the areas of finance

A

Corporate Finance
Personal Finance
Investment and Portfolio Management
Financial Markets and Institutions
Public Finance

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12
Q

it is about taxes, spending, balancing the budget, and financing public debt

A

Public Finance

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13
Q

Importance of financial Management

A

Improve profitability
Increase the value of the firm
Promoting savings
Financial planning
Acquisition of funds
Proper use of funds
Financial decision

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14
Q

is one of the emerging areas which provides immense opportunity to finance and economical areas

A

Economics

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15
Q

records the financial information of the business

A

Accounting

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16
Q

modern approaches of the financial management applied large number of mathematical and statistical tools and techniques. They are also called as

A

Econometrics

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17
Q

It is the operational part of the business which helps to multiply the money into profit

A

Production Management

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18
Q

produced goods are sold in the market with innovative and modern approaches.

A

Marketing

19
Q

Financial management is also related to human resource department which provides manpower to all the functional areas of the management

A

Human Resources

20
Q

Scope of financial management

A

Economics
Accounting
Mathematics
Production Management
Marketing
Human Resources

21
Q

Functional Areas of modern financial Management

A

Determining financial needs
Choosing the sources of funds
financial analysis and interpretation
Cost-volume-profit analysis
working capital management
Dividend Policy
Capital Budgeting

22
Q

Financial manager should determine the financial needs of the business

A

Determining financial needs

23
Q

institution that can provide long-term funds

A

Choosing the sources of funds

24
Q

profitability, liquidity, short-term and long-term financial position of the business

A

Financial analysis and interpretation

25
Q

Fixed costs, variable costs, and semi-variable costs have to be analyzed

A

Cost-volume-profit analysis

26
Q

part of the firm’s capital which is required for financing short-term assets such as cash, receivables, and inventories.

A

Working Capital Management

27
Q

Estimating the financial viability of capital investment over the life of the investment

A

Capital Budgeting

28
Q

Organization of the finance functions

A

Investment Decision
Financing Decision
Dividend Decision

29
Q

it relates to the selection of assets in which funds are invested by the firm

A

Investment Decision

30
Q

two categories of investment decisions

A

Long term assets
short term assets

31
Q

yield a return over a period of time in the future

A

Long term assets

32
Q

convertible into cash in the normal course of business, usually within a year.

A

Short term assets

33
Q

decisions as to how to raise the funds to pay for investment in assets. It determines the best financial mix of the firm.

A

Financing Decisions

34
Q

two types of financing decisions

A

Capital Structure theory
Capital structure decisions

35
Q

decisions as to how much, how frequently, and in what form to return cash to owners

A

Dividend decisions

36
Q

Objectives of financial Market

A

Profit maximization
Wealth Maximization

37
Q

It aims at maximizing the profit of the business

A

Profit Maximization

38
Q

one of the modern approaches that involves the latest innovations and improvements in the business.

A

Wealth Maximization

39
Q

It is also known as value maximization or net present worth maximization

A

Wealth Maximization

40
Q

is forward-looking and based on cash flows

A

Financial Management

41
Q

historic in nature and focuses on profit rather than cash

A

Financial Accounting

42
Q

concerned with raising funds and providing a return to investors

A

Financial Management

43
Q

primarily concerned with the provision of information for management to assist it in making decisions within the company.

A

Management Accounting

Finance Dr. Poliquit (7 decks)

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