23.3 - Functions of Financial Management
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Practice Questions
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What is the main purpose of financial planning?
💡 Hint: Think about what businesses need to operate effectively.
What does managing working capital involve?
💡 Hint: Look at everyday bills and inventory.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary goal of financial planning?
💡 Hint: Think about the foundation of how businesses operate.
True or False: The financing decision refers to how much profit to reinvest in the company.
💡 Hint: Revisit definitions of financing versus profit retention.
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Challenge Problems
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A company is deciding whether to invest in new software development or upgrading existing systems. Apply the capital budgeting techniques of NPV and IRR to determine which project they should fund.
💡 Hint: Remember the formulas for NPV and IRR.
A business has received offers for both debt financing and equity financing. Create a comparative analysis regarding the costs, benefits, and potential risks associated with each option.
💡 Hint: Think about which option aligns with the company's growth strategy.
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