Module 1: Introduction to Financial Management

Question 1

The system or study of
creating, circulating, and
managing money.

Answer 1

Finance

Question 2

Primary Goals
of Finance

Answer 2

1. Earn/Maximize Profit
2. Increase Firm Value
3. Improve quality of living

Question 3

• Inputs and Outputs
• Work is to be done in
  a correct manner.

Answer 3

EFFICIENCY

Question 4

• Doing accurate work

Answer 4

EFFECTIVENESS

Question 5

1. GOVERNMENT
   INSTITUTIONS
2. STATE GOVERNMENTS
3. LOCAL SELF
   GOVERNMENTS
4. CENTRAL
   GOVERNMENTS

Answer 5

PUBLIC FINANCE

Question 6

1. PERSONAL FINANCE
2. BUSINESS FINANCE
3. FINANCE OF NON PROFIT
   ORGANISATIONS

Answer 6

PRIVATE FINANCE

Question 7

The ______ decides as
to where to get
financial resources
needed by the firm
in its operation

Answer 7

Financial Manager

Question 8

• Households
• Individuals
• Companies/Corporations
• Government Agencies

Answer 8

SAVERS

Question 9

• Banks
• Insurance Companies
• Stock Exchanges
• Brokerage Firms
• Mutual Funds
• Other Financial Institutions

Answer 9

Financial Intermediaries

Question 10

• Households
• Individuals
• Companies/Corporations
• Government Agencies

Answer 10

Users

Question 11

Financial Intermediaries

Answer 11

• Commercial Banks
• Nonbank Financial Institutions
• Insurance Companies

Question 12

Financial Instruments

Answer 12

Equity Securities
* Ordinary Shares
* Preferred Shares
Debt Securities
* Commercial Bonds
* Commercial Papers
* Treasury Bills
* Treasury Notes
* Retail Treasury Bonds

Question 13

Financial Markets

Answer 13

• Primary and Secondary Market
• Money and Capital Market

Question 14

Functions of VP for Finance

Answer 14

• Investing
• Financing
• Operating