4. Quiz - FDM - Questions

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School
Harvard University **We aren't endorsed by this school
Course
BUSINESS MISC
Subject
Management
Date
Nov 20, 2023
Pages
7
Uploaded by AdmiralAtomJackal40 on coursehero.com
FI NANCIAL DECISION MAKING QUIZ INSTRUCTION: There are two sections in this quiz, Section A and Section B. Answer ALL questions in both sections. Mark Allocation: Section A - 20 marks Section B - 20 marks SECTION A 1. Decision making is best defined as ... A. Choosing the right action to take. B. Making a choice among several possible alternatives. C. Making a choice between two alternatives D. Deciding on the best action to take 2. Decision problems are complex because, EXCEPT : A. Numerous dimensions some of which can only be described in qualitative terms. B. Relationships between dimensions are unclear. C. Problem usually involve one department or division. D. There are a number of possible alternatives. 3. Categories of decision making DOES NOT include: A. Decision under certainty B. Decision under probabilistic precision C. Decision under probabilistic uncertainty D. Decision under information imperfection 1
4. Approaches to decision making DOES NOT include: A. Routine recourse to future procedures. B. Purely intuitively. C. Random selection. D. Systematic rational thought supported by relevant information. 5. Financial Decision Making is best defined as ... A. Analysing the accounting problems that the company faces and deciding which course of action should be taken. B. Analysing the cashflow problems that the company faces and deciding which course of action should be taken. C. Analysing the money problems that the company faces and deciding which course of action should be taken. D. Analysing the financial problems that the company faces and deciding which course of action should be taken. 6. The main financial decisions are, EXCEPT : A. Investment decision B. Cashflow decision C. Financing decision D. Dividend decision 7. Financial planning is ... A. A continuous process of directing and allocating financial resources to meet strategic goals and objectives B. A continuous process of directing and allocating all resources to meet strategic goals and objectives C. A continuous process of directing and allocating physical resources to meet strategic goals and objectives D. A continuous process of directing and allocating material resources to meet strategic goals and objectives 2
8. Cash flow is determined by looking at the following components by which cash enters and leaves a company, EXCEPT : A. Operations B. Investments C. Financing D. Potential revenue 9. Cash budgets under the Investments category DOES NOT include changes in: A. Debt B. Equipment C. Assets D. Investments 10. Financial decisions involve, EXCEPT : A. Identification of potential financial problems. B. Determining actual cash movements. C. Analysis of the effects of alternative courses of action D. The decision maker to use the analytical techniques of financial analysis. 11. Short- term investment decisions include the level of current assets which consist of the following that are necessary for day-to-day operations, EXCEPT : A. Cash B. Accounts receivable C. Inventories D. Fixed asset purchases 12. The output from financial planning takes the form of which of the following: A. Budgets B. Cashflow statement C. Income Statement D. Balance Sheet 13. In financial planning, the inputs for the computation of cost of goods available for sale DO NOT include: A. Opening inventory 3
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