Practice Functions of Financial Management - 23.3 | 23. Introduction to Financial Management | Management 1 (Organizational Behaviour/Finance & Accounting)
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Functions of Financial Management

23.3 - Functions of Financial Management

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Practice Questions

Test your understanding with targeted questions

Question 1 Easy

What is the main purpose of financial planning?

💡 Hint: Think about what businesses need to operate effectively.

Question 2 Easy

What does managing working capital involve?

💡 Hint: Look at everyday bills and inventory.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

What is the primary goal of financial planning?

Maximizing profits
Ensuring liquidity
Estimating capital requirements

💡 Hint: Think about the foundation of how businesses operate.

Question 2

True or False: The financing decision refers to how much profit to reinvest in the company.

True
False

💡 Hint: Revisit definitions of financing versus profit retention.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

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.

Challenge 2 Hard

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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Reference links

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