In: Finance
6 questions below.
1) The CFO is concerned with a mix of what two factors when managing the capital structure?
A
Borrowing
B
Ownership financing
C
Accounts payable
D
Fixed asset purchases
2)
Name an example of an agency conflict found within an organization.
3)
What operations or actions can't a financial manager or employee do to maximize shareholder wealth?
4.)
Of the following, which questions will be discussed by a financial manager when performing the capital budgeting process?
A
Should we invest in a new piece of equipment?
B
Should I hire Tony as a data analyst?
C
Should we buy a competing firm?
5.)
Which question(s) below will a financial manager consider when performing working capital management processes?
A
How much inventory should I keep on hand this quarter?
B
How will the Christmas season impact my carrying costs?
C
How much credit should I extend to my customers?
6.)
What are examples of long-term investments for organizations?
A
Acquisition of a competitor.
B
Purchase of a new piece of machinery.
C
Open up a subsidiary in South America.
D
Develop a new line of products.
Correct answers are:-
1) The CFO is concerned with a mix of what two factors when managing the capital structure?
A
Borrowing
B
Ownership financing
2)
Name an example of an agency conflict found within an organization - Senior Executives deciding on their own compensation and increasing the costs for the firm.
3)
What operations or actions can't a financial manager or employee do to maximize shareholder wealth?
Influence the stock price of the company to go up by creating demand for the share so that stock holder's wealth is increased.
4.)
Of the following, which questions will be discussed by a financial manager when performing the capital budgeting process?
A
Should we invest in a new piece of equipment?
5.)Which question(s) below will a financial manager consider when
performing working capital management processes?
All three are relevant
A
How much inventory should I keep on hand this quarter?
B
How will the Christmas season impact my carrying costs?
C
How much credit should I extend to my customers?
6.)
What are examples of long-term investments for organizations?
Two mentioned below are most relevant
C
Open up a subsidiary in South America.
D
Develop a new line of products.