THE UNIVERSITY OF ZAMBIA BACHELOR OF BUSINESS ADMINISTRATION COURSE: BBA 3211 - FINANCIAL MANAGEMENT PRACTISE QUESTIONS By: E.M Simbeza MSc,FCCA,FZICA,Gad.Dip,BA (Hons),DPACOURSE: BBA 3211 - FINANCIAL MANAGEMENT PRACTISE QUESTIONS 1.FM Plc You are the Financial Manager for a large FMCG producing various drinks in Zambia. Your company's long term focus has been to maximise shareholder wealth as the major objective. A need has arisen for the company to review and amend it’s corporate strategy to be more responsive to changing economic factors. Your Managing Director thinks the single objective is inappropriate and has asked her fellow directors for their comments on the need to include the following in the corporate strategy; a. Cashflow generation b. Customer satisfaction )COURSE: BBA 3211 - FINANCIAL MANAGEMENT PRACTISE QUESTIONS 1.FM Plc c. Performance improvement in areas like employees’ remuneration, quality & safety of working conditions as well as environmental friendly practises. d. Profitability as measured by profit after tax and return on investment. Required: Provide your Managing Director with a report for presentation at the next Board meeting which should - I. Discuss the argument that maximisation of shareholder wealth should be the only true objective of the company. - 10 marks (ii) Discuss your Managing Director's suggestion of other objectives. - 30 marks