Lesson 2

Question 1

is a long range scope and has its focus in organization as a whole.

Answer 1

Strategic Planning

Question 2

it involves financial planning, financial forecasting, provision of finance and formation of finance policies which lead to firm’s survival and success.

Answer 2

Strategic financial planning

Question 3

reflects how the company plans to achieve it’s goals and objectives.

Answer 3

Business Plan

Question 4

Father of modern economics

Answer 4

Adam smith

Question 5

concern with ways in which firm’s obtain and manage it’s financing to support it’s investing. responsible for determining how scarce the resourcs or funds are committed to the project

Answer 5

Finance Manager

Question 6

Responsibilities to achieve financial objective

Answer 6

Financing
investing
operating
engaging

Question 7

Strategic planning multidimensional objective

Answer 7

1.Profitability
2.Expansion Growth
3.Survival
4.Leadership
5. Success
6. Positioning of the Firm
7.Reaching Global Market
8. Brand Positioning

Question 8

Short and Medium-Term

Answer 8

-Maximization of return on capital employed or return on investment
➢ Growth in earnings per share and price/earnings ratio through maximization of net income or profit and adoption of optimum level of leverage
➢ Minimization of finance charges.
➢ Efficient procurement and utilization of short-term, medium-term and long-term

Question 9

Long Term

Answer 9

-Growth in the market value of the equity shares through maximization of the firm’s market share and sustained growth in dividend to shareholders
➢ Survival and sustained growth of the firm