Financial Management Introduction Flashcards

1
Q

What is the ultimate objective of the financial management function in a profit-oriented entity?

A

The ultimate objective of financial management is to maximize the value of the entity, usually as reflected by the market price for the firm’s stock.

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

Identify three responsibilities of the financial management function of an entity.

A
  1. Managing the capital and financial structure of the entity
  2. Planning, allocating and controlling an entity’s financial resources
  3. Identifying and managing financial risks faced by the entity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly