DEPARTMENT OF FINANCE (UGBS)

FIRST SEMESTER 2019/2020 ACADEMIC YEAR

FINC 301: INTRODUCTION TO BUSINESS FINANCE I

TUTORIAL SET 1

1. Corporate finance is the study of the ways to answer three major questions. What fixed
assets the firm should buy? What is the best way to raise cash to finance the purchase of
fixed assets? How should the firmmanage its short term assets and liabilities? These are
referred to to as ________________________, ________________________ and
__________________ decisions

2. What is the ultimate goal of financial management?

3. How can the financial manager affect this goal?

4. What are the three legal forms of business organisation. List 2 advantages and
disadvantages each of the 3 legal forms.

5. What is the agency problem? Use a simple diagram to show the agency relationship.
What mechanisms can be put in place to reduce agency costs?

6. In what five (5) ways can the financial market be classified? Give the major types or
classes under each category.

Teaching Assistants: Francis Kofi Gogovie and Gifty Asantewaa Nkrumah