Unit 1

Question 1

Financial management make decisions that

Answer 1

Maximise share price

Maximise shareholders’ wealth

Question 2

Components of shareholders’ wealth/return

Answer 2

#Capital growth (increase in share price)
#Cash distributions

Question 3

Agency relationship

Answer 3

Manager act on the owner’s behalf

Question 4

Agency problem

Answer 4

Manager doesn’t act in the best interest of the owners, but in his own interest

Question 5

Basic indication of wealth is determined by

Answer 5

Cash flows

2. Timing of cash flows
3. Risk profile of a company

Question 6

Objective of a financial manager

Answer 6

Is to grow the funds that were invested by shareholders to max their wealth in the long run.

Question 7

Aim of financial manager

Answer 7

To max cash flows, as soon as possible and act at the lowest risk on a sustainable basis

Question 8

What is the main objective of starting a business

Answer 8

To make money

Question 9

Stategic planning

Answer 9

It is a disciplined effort that produces fundamental decisions and action that shape and guides what an organisation is, who it serves ans what it doe s

Question 10

Stategic plan

Answer 10

It is a statement/document of long term goals and definition of the strategic and policies which will ensure achievement of these goals

Question 11

Stategic activities

Answer 11

Activities and specifications of resource required to achieve a specific project

Question 12

Uj’s vision

Answer 12

An international university of choice, anchored in Africa, dynamically shaping the future

Question 13

Uj’s mission

Answer 13

Inspiring its community to transport and serve humanity through innovation and the collaborative pursuit of knowledge

Question 14

What is strategy

Answer 14

It is a course of action, to achieve sustainable competitive advantage

Question 15

How does business achieve sustainable competitive advantage (strategy)

Answer 15

1. Performing different activities from our rivals

2. performing similar activities in different ways.

Question 16

Definantion of strategy

Answer 16

1. Direction and scope of an organisation
2. Over the long period
3. To achieve competitive advantage
4. Through the configuration of resource
5. Within a changing environment
6. To meet the needs of
   * markets
   
   • stakeholders

Question 17

What is the core of company’s strategy

Answer 17

The core of a company’s strategy concerns its markets and its products and is about choosing

• what do we do
• how to compete? (cost or differentiation)
• where to compete? (geographical /segments

Question 18

What is the role of charted management accountant

Answer 18

Is to help organisations establish viable strategies and convert them into profit or value for money

Question 19

What support strategy

Answer 19

Mission
Goals
Vision
Trade-offs

Question 20

Goals is divided in two things what are they?

Answer 20

Aims - non operational /qualitative

Objectives - operational /quantitative