Module 1

Question 1

What is the aim of financial management?

Answer 1

To maximise the value of the company.

maximise shareholder wealth

Question 2

what are the three key finance functions?

Answer 2

investing
financing
managing daily activities

Question 3

Who takes on the role of finance manager in larger companies?

Answer 3

it may be the board of directors rather than a particular individual

Question 4

What is a corporate plan?

Answer 4

strategy contusing overall vision and mission statement.

Question 5

What is a financial plan?

Answer 5

subsidiary of the corporate plan. planning and provision of adequate financial resources to meet obligations.Must consider the three finance functions

Question 6

Should a finance plan contain only past information?

Answer 6

No, can also include forecasts

Question 7

What external factors should be considered?

Answer 7

environmental - govt, monetary policies, changing patterns

market structure and quality - positions, no customers, sales growth, geographical ares, public perception etc