CFC Financial Management & Strategy

Question 1

What is the primary goal of financial management?

Accepted Answer

Maximize shareholder value

Answer

Minimize expenses

Answer

Avoid investments

Answer

Increase debts

Question 2

Which financial strategy focuses on long-term growth?

Accepted Answer

Capital budgeting

Answer

Working capital management

Answer

Cost cutting

Answer

Dividend policy

Question 3

What does ROI stand for in financial strategy?

Accepted Answer

Return on Investment

Answer

Revenue of Income

Answer

Rate of Inflation

Answer

Risk of Investment

Question 4

What is working capital management?

Accepted Answer

Managing short-term assets and liabilities

Answer

Planning long-term investments

Answer

Setting dividend policies

Answer

Reducing operational costs

Question 5

What role does risk management play in financial strategy?

Accepted Answer

Identify and mitigate risks

Answer

Ignore financial risks

Answer

Increase risks

Answer

Avoid budgeting

Question 6

What is a dividend policy?

Accepted Answer

Profit distribution plan

Answer

Investment strategy

Answer

Risk management technique

Answer

Cost control method

Question 7

What is the significance of financial forecasting?

Accepted Answer

Predict future financial results

Answer

Evaluate past performance

Answer

Ignore market trends

Answer

Eliminate budgeting

Question 8

Which financial statement provides a snapshot of financial position?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Statement of changes in equity

Question 9

What is capital structure?

Accepted Answer

Mix of debt and equity financing

Answer

Operational expenses

Answer

Investment portfolio

Answer

Marketing budget