BUS 2040 (D076) Finance Skills for Managers OA (Qns & Ans) 2025BUS 2040 (D076) Finance Skills for Managers OA (Qns & Ans) 2025BUS 2040 (D076) Finance Skills for Managers OA (Qns & Ans) 2025BUS 2040 (D076) Finance Skills for Managers OA (Qns & Ans) 2025
1. Read All Questions Carefully: Make sure you understand each question.
2. Time Management: You have a specific amount of time to complete the exam.
Keep an eye on the clock and pace yourself.
3. Allowed Materials: Only use materials that are explicitly allowed. Unauthorized
materials can lead to disqualification.
4. ANS Format: Follow the required format for your ANS. For example, multiple-
choice questions might need you to select the best ANS, while essay questions
require detailed responses.
5. Academic Integrity: Adhere to the university's honor code. Any form of cheating or
plagiarism is strictly prohibited.
6. Technical Requirements: Ensure your computer and internet connection are
stable. For online exams, you might need a webcam and microphone for proctoring
purposes.
7. Submission: Submit your ANS before the time expires. Late submissions might
not be accepted.
,1. Which of the following best describes the primary goal of
financial management in a business?
- A. Conducting market research
- B. Maximizing shareholder value
- C. Developing new software applications
- D. Managing daily business operations
- ANS: B
- Rationale: The primary goal of financial management is to
maximize shareholder value by making decisions that increase the
value of the firm.
,3. Which of the following best describes the purpose of working
capital management?
- A. To manage daily business operations
- B. To ensure that a company has sufficient liquidity to meet its
short-term obligations
- C. To conduct market research
- D. To develop new software applications
- ANS: B
- Rationale: Working capital management ensures that a
company has sufficient liquidity to meet its short-term obligations
and operate efficiently.
4. What is the primary function of financial leverage in financial
management?
- A. To manage daily business operations
- B. To increase a company's profitability by using borrowed
funds
- C. To conduct market research
- D. To develop new software applications
- ANS: B
, - Rationale: Financial leverage involves using borrowed
funds to increase a company's profitability, amplifying returns on
equity.
Fill-in-the-Blank Questions
5. The __________ ratio measures a company's ability to meet
its short-term obligations with its most liquid assets.
- ANS: current
- Rationale: The current ratio measures a company's ability to
meet its short-term obligations with its most liquid assets,
providing insight into its liquidity position.
6. In financial management, __________ refers to the process of
determining the present value of future cash flows.
- ANS: discounting
- Rationale: Discounting refers to the process of determining
the present value of future cash flows, helping managers assess
the value of investments and projects.
7. The __________ method is used to evaluate the profitability
of an investment by comparing the present value of cash inflows
to the initial investment.
- ANS: net present value (NPV)
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