FIN2603 Finance For Non Financial Managers (FIN2603)

FIN2603 Exam Study Notes. Latest Document. The Financial goal of a firm. 1. Introduction. • Firms exist because they satisfy a need by providing a product or service. • Firms do not only meet the need for consumers but also the needs of other firms. • The emphasis on customers needs and on providing a quality product/service to meet the needs of customers is normally stated in the firms mission statement. • Mission statement - describes the fundamental purpose that sets a firm ap...

FIN2603 - BOOK SUMMARY Chapter 1 - The financial goal of the firm The financial goal of the firm:  The goal of the firm is to maximise shareholders’ wealth and not maximise profit  Diversification means not placing all your money in a single investment – but spreading it over various investments  The short-term goal of the firm should be to ensure the: o Profitability – firms ability to generate revenues that will exceed total costs by using the firm’s assets for produc...

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 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...

fin2603-assignment-one-preparation-questions. 1. One method often used by companies to ensure that management decisions are in the best interest of the shareholders is to ... A. have a shareholder meeting once a year. B. threaten to fire managers who do not performing adequately. C. tie management compensation to the performance of the company share price D. tie management compensation to the level of earnings per share. 2. The long-term financial goal of the firm may be achieved by .. A...

FIN2603 Exam Pack 2022. 100% Verified Q And A. The part of finance concerned with design and delivery of advice and financial products to individuals, businesses and the government is called ...  A. managerial finance.  B. financial advice.  C. financial services.  D. financial planning. Answer Key:C Question 2 of 20 1.0 Points What financial securities are likely to be traded on the JSE Limited?  A. Ordinary shares  B. Treasury bills  C. Commercial pa...