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5. Discuss a money management challenge in a personal setting and how you would
overcome it.
6. Pick a ratio and explain what it is and how it is used.
7. What is fundamental analysis and where and when would it apply to a business decision.
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- What is your primary objective in choosing a company in which to invest money? What key items or relationships will you look for in each financial statement that will help you decide in which company to invest?What is the accounting equation and discuss how it impacts on the operations of a business? 2. Why is liquidity critical for a business and how might this affect decision making? 3. Why is investment appraisal important to a business? Use examples to support your reasons. 4. What is meant by relevant costs and critically explain their role in decision making. 5. Discuss the benefits of the information contained in the Income Statement/Profit and Loss Account.1. Explain the concept of finance.2. How is finance related to other functional areas in a business organization (marketing, production, accounting, etc.)?3. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant.4. Why do you need to understand finance?5. What goal should always motivate the actions of the firm’s financial manager?
- Which of the following is a decision made by an internal user? A. How much money should the business budget for production? B. Should I invest in the business? C. Should we lend money to the business? D. All of the above are correct.Examine the business activity and decide for its classification from the choices below. Also, indicate if it is an inflow (-) or outflow (+). Activity: Pay employee salaries Choices: (O) Cash flow from operating activity (I) Cash flow from investing activity (F) Cash flow from financing activity (NC) Non-cash investing/financing activityA company's stakeholders often differ in their financial statement focus. For example, some stakeholders focus primarily on the income statement, while others focus primarily on the statement of cash flows or the balance sheet. For each of the following situations, indicate which financial statement would be the most likely focus for the stakeholder. Choose either the income statement, balance sheet, or statement of cash flows. Situation 4: Assume that you are considering taking a job (internal stakeholder) with either Sears or JCPenney. Situation 5: Assume that you are a banker for US Bank (capital market stakeholder), and you are considering whether to grant a major credit line (loan) to Target. The credit line will allow Target to borrow up to $400 million for a five-year period at the market rate of interest.
- 1. Discuss the finance officer's need for understanding the other functional area of the business 2. Explain the reason why a finance officer should have good communication skills.What are the three types of financial management decisions? For each type of decision give an example of a business transaction that would be relevant l, use your own wordsWhich statement is most accurate? Accounting and finance are not related. Financial managers keep the books for a firm. Financial managers need to understand accounting. Nonprofit organizations need accounting but not finance.
- Direction: Identify what describes the following statement. Write your answer on the blank before the number. ____________________1. It pertains to the state of one’s personal monetary affairs. ____________________2. It measures the ability to generate earnings from its resources or investments. ____________________3. It measures the ability to generate profit that ensures to pay business expenses and maintain a long-term financial success of the business. ____________________4. It measures the ability of the company to settle its short term debts. ____________________ 5. It measures how the business manage its assets or resources to produce output without wastage. ____________________6. It presents the financial statement amounts as a percentage of a base number. ____________________7. It is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability. ____________________8. These users of financial information are…I. Direction: Identify what describes the following statement. Write your answer on the blank before the number. ____________________1. It pertains to the state of one’s personal monetary affairs.____________________2. It measures the ability to generate earnings from its resources or investments. ____________________3. It measures the ability to generate profit that ensures to pay business expenses and maintain a long-term financial success of the business. ____________________4. It measures the ability of the company to settle its short term debts. ____________________ 5. It measures how the business manage its assets or resources to produce output without wastage. ____________________6. It presents the financial statement amounts as a percentage of a base number. ____________________7. It is used to evaluate a number of issues with an entity, such as its liquidity, efficiency of operations, and profitability. ____________________8. These users of financial information are interested…Discuss the role of finance in business. What is the purpose of financial management? Describe the kinds of activities that financial management involves. What kind of tools do financial managers leverage to access and/or monitor the health and performance of a business?