II. Choose the correct answer using the letter in the space provided. (35 points
ID: 2783888 • Letter: I
Question
II. Choose the correct answer using the letter in the space provided. (35 points) 1. Which of the following is not an objective of managerial finance? to. Ensure human resources and staff development. b. Maximize the vealth of the owners. c. Maximize company profits d. None of the above. 2. To in ^ the wealth of the owners, it is required; to, increousiness sales b. decreass business operating costs. c. maximize the efficiency of assets d. all of the above. 3. The economic cycle consists of to. recession and depression. b. recovery and expansion. c. all of the above. d. none of the above. 4, Sources of funds are to. increase in liabilities and assets. b. increase in liabilities and capital. c. decrease in passive and active d. decrease in income and expenses DOLLExplanation / Answer
Answer 1: (a)
Option b & c are the objectives of managerial finance. A financial manager's main objective is concerned with the raising and management of finance, it has nothing to do with human resource.
Answer 2: (d)
Increasing wealth of the investors or the owners is the prime objective of Financial management. The Financial manager is expected to take all the above three measures to increase profitability of the organization, ultimately increase the wealth of the owners.
Answer 3: (c)
Economic Cycle is the natural fluctuations in the economy from the recession or depression to the recovery or expansion.
Answer 4: (b)
Sources of funds are a natural increase in the liabilities of the company, as they have to be paid back to the creditors. Also the funds could be influxed into the business by the owners, so it increases capital of the firm.