Financial Management

Question 1

deals with that decisions that are supposed to maximize the
value of shareholder’s wealth (Cayanan).

Answer 1

Financial Management

Question 2

elect the Board of Directors (BOD).

Answer 2

The shareholders

Question 3

Board of Directors

Answer 3

: The board of directors is the highest policy making body in a
corporation.

Question 4

Include making decisions as to how to finance long-term
investments and working capital-which deals with the day-to-day operations of the
company.

Answer 4

Financing decisions

Question 5

To minimize the probability of failure, long-term investments
have supported by a capital budgeting analysis.

Answer 5

Investing Decisions-

Question 6

deal with the daily operations of the company especially on
how to finance working capital accounts such as accounts receivable and inventories.

Answer 6

Operating Decisions

Question 7

Dividend is a part of profits that are available for distribution, to
equity shareholders. The Finance manager must decide whether the firm should
distribute all the profits or retain them or distribute a portion and retain the balance

Answer 7

Dividend Policies –