Chapter 3 Flashcards

1
Q

General objectives of regulatory bodies

A

Promotion of social objectives

Protection of customers from monopoly of power

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

How our company can mitigate for risky projects

A

Decrease its reliance on debt, finance, and decreases, gearing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

How will I company with a number of positive NPV projects allocate its cash flow?

A

Likely to minimise dividend payouts to make funds available for investment in projects 

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is likely to be considered domestic tax implications when setting financial strategy?

A

The income tax rules relating to dividends

The availability of tax relief, on debt, finance,

Special share issue schemes, that they allow investors tax relief on their investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly