REVIEWER

 How true is the statement “It is not the role of a financial manager to determine when the
company should declare cash dividends?

It is false
 Who among the Corporate Organization oversees the operations of a company and ensure
that the strategies as approved by the board are implemented as planned?
President or CEO
 The wealth of the owners of the corporation is represented by which of the following share?
Share Value
 What is a type of financial intermediary that pools savings and individuals and make them
available to business and government user? In which funds are obtained through the sales?
Mutual Fund
 Why is Profit maximization as a goal is not ideal?
It is not ideal because it does not risk and cash flow
 Why should shareholder wealth maximization be the overriding of management?
I and II
 Which of the following is a responsibility of a President or Chief Executive Officer (CEO)?
Oversee the operations of a company and ensure that the strategies as approved by
the board are implemented as planned.
 What others positions can you think of that are related to financial management?
Controller and Treasurer
 Wealth maximization as the goal of the firm implies enhancing the wealth
The firm’s stockholders
 What is created by a financial relationship between suppliers and users of short-term funds?
Money Market
 Do you agree that Capital Structure refers to how much of your total assets is financed by
debt and how much is financed by equity?
Yes, I agree.
 Include making decisions on how to fund long term investments (such as company
expansions) and working capital which deals with the day to day.
Financing decisions
 Short term investment decisions are needed when the company is in an excess cash
position. To plan for this, the Financial Manager should be able to make use of Financial
Planning tools. What are these tools?
Budgeting and Forecasting
 If we used the money from our borrowing. The asset bought is financed by ______.
Debt
 How true is the statement: “The money market involves trading of securities with maturities
of one year or less while the capital market involves the buying and selling of securities with
maturities of more than one year.”
It is true
 What would the goal of profit maximization result in?
Priority for earnings per share
 Who among the corporate organizations elects the Board of Directors (BOD)?
Shareholders
 Each share held is equal to how many voting right?
One
 Which of the following is not a financial institution?
A newspaper publisher
 Which of the following is NOT among the responsibility of VP Marketing?
Carries out the decision making for all functions
 What is a set up so that employees of corporations or governments can receive income for
retirement?
Pension funds
 Based on the profit maximization goal, what would the financial manager would choose?
Asset 2
 What is a tool to assess whether the investment will be profitable in the long run?
Capital budgeting analysis
 What is the primary goal of the financial manager?
Maximizing wealth
 When do you think Short term investments happen?
When company is in an excess cash position
 Which of the following is not a service provided by financial institutions?
Buying the businesses of the customers
 Most businesses raise money by selling their securities. Where do they sell their securities?
A public offering
 What is Sgort term sources?
Short term sources are those with payable in at most 12
months
 How true is the stement’ “Primary and secondary markets are markets for short-term and
longterm securities, respectively.”
It is False.
 What is the primary responsibility of Board of Directors?
II only
 What is the one financial intermediary handling individual savings and receives premium
payment that are placed in loans?
Life Insurance Company
 Who is the one that provides assistance in payroll preparation?
VP for Administration
 How true is the statement, “Holders of equity have claims on both income and assets that
are secondary to the claims of creditors?
It is true
 Which of the following is NOT among the responsibility of VP for Administration?
Identifying adequate and cheap

 What are functions for VP for Finance?
I, II, III & IV
 Who among the corporate organization analyses and evaluates the effectiveness and cost of
marketing methods applied?
VP for Marketing
 What is the role of government in the flow of funds within an organization through and from
the enterprise?
Government is usually the net demanders of funds
 By definition the money market
Short term funds
 Which of the following is among the responsibility of VP for Production?
Ensuring production meets customer demands.
 Where do corporate owners receive realizable return?
increase in share price and cash dividends.
 Firms that require
I, II, III
 Whose role is determining the appropriate capital structure of the company?
VP for Finance of the Financial Manager
 What are the major securities traded in the capital structure
Stock and Bonds
 Whar refers to how much of your total assets is financed by debt and how much is financed
by equity?
Capital Structure
 What is a Capital Budgeting Analysis?
a tool to assess whether the investment will be profitable in the long
run.
 What is the highest policy making body in corporation?
Board of Directors

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 How true is the statement “It is not the role of a financial manager to determine when the

company should declare cash dividends?

Identifying adequate and cheap

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