FREE CBS Financial & Risk Management Questions and Answers
Which financial metric is commonly used to assess a company’s profitability?
Correct!
Wrong!
Net profit margin measures how much profit a company makes after accounting for expenses.
How can businesses mitigate financial risks?
Correct!
Wrong!
Diversifying revenue streams reduces dependence on a single income source, lowering financial risk.
Why is risk assessment crucial for business stability?
Correct!
Wrong!
Risk assessment helps identify potential financial threats and develop strategies to minimize losses.
What is a common method for managing cash flow effectively?
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Wrong!
Budgeting helps businesses allocate resources efficiently and avoid financial shortfalls.
Which strategy helps businesses recover from financial setbacks?
Correct!
Wrong!
Maintaining an emergency fund allows businesses to manage unexpected financial challenges effectively.
What is the primary goal of financial management in a business?
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Wrong!
Effective financial management ensures profitability, sustainability, and strategic resource allocation.