FIN2603 ASSINGMENT 1.
Question 2 of 21
The best way in which a firm may improve its profitability would involve ...
A. reducing expenditure on non-core business activities.
B. employing fewer permanent staff and using contract workers during peak periods.
C. increasing sales by means of improv...
The best way in which a firm may improve its profitability would involve ...
A. reducing expenditure on non-core business activities.
B. employing fewer permanent staff and using contract workers during peak periods.
C. increasing sales by means of improved marketing. Generate revenue that will exceed total cost
pg.5
D. selling all its non-core assets.
Question 3 of 21
The primary goal of a publicly-owned firm interested in serving its shareholders should be to ...
A. minimize the debt used by the firm.
B. maximize the EPS.
C. maximize the share price.
D. maximize the expected net income.
Question 4 of 21
The primary short-term financial goal of the firm may be best achieved by ...
A. maximizing revenue and minimizing expenses.
B. minimizing the cost of capital and maximizing the internal rate of return (IRR).
C. increasing expenses in order to reduce the firm’s tax liability.
D. accelerating cash inflows and delaying cash outflows. Liquidity pg.5
Question 5 of 21
Operating profit is defined as ...
A. gross profit minus operating expenses.
B. sales revenue minus cost of goods sold.
C. earnings before depreciation (interest) and taxes.
D. sales revenue minus depreciation expenses.
Question 6 of 21
If accounts receivable increases by R300, inventory decreases by R100 and accounts payable
increases by R200, net working capital would
A. decrease by R200.
B. increase by R200.
C. increase by R100.
D. remains unchanged.
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