Practice Key Areas - 12.6.1 | 12. Decision-Making in Organizations | Management 1 (Organizational Behaviour/Finance & Accounting)
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12.6.1 - Key Areas

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is capital budgeting?

💡 Hint: Think about investments that last for years.

Question 2

Easy

What does working capital management focus on?

💡 Hint: Consider cash flow and daily operations.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What is the main focus of capital budgeting?

  • Short-term profits
  • Long-term investment decisions
  • Daily operational expenses

💡 Hint: Consider where a company places its large investments.

Question 2

True or False: Financing decisions can only involve acquiring loans.

  • True
  • False

💡 Hint: Remember the balance between debt and equity.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A firm is considering investing in new technology that requires a capital expenditure of $500,000, expected to generate a return of $150,000 annually for five years. Determine the NPV if the discount rate is 10%.

💡 Hint: Remember the formula for calculating NPV and apply the discount factor.

Question 2

Imagine a company that needs to decide between issuing bonds or stocks to raise $1 million. Discuss the potential advantages and disadvantages of both options and their impact on the company's long-term financial health.

💡 Hint: Consider long-term implications and immediate advantages of cash flow.

Challenge and get performance evaluation