HKMA David Li Kwok Po College

S4 BAFS
Ch. 5 Key Business Functions Classwork 3
1
Financial management is concerned with
A. attracting, developing and retaining capable employees.
B. acquiring, using and managing funds.
C. transforming inputs into outputs.
D. generating revenue for the company.

Answer: B

2
The following are the duties of a finance manager except for
A. monitoring a company’s cash flow.
B. devising a compensation system to pay the staff.
C. advising top management on financial matters.
D. obtaining loans from banks.

Answer: B

3
A __________ is a detailed plan of income, costs and expenses expected over a
period of time.
A. budget
B. financial plan
C. short-term financial forecast
D. long-term financial forecast

Answer: A

4
A financial plan
A. forecasts the financial needs of a company.
B. lists the way of obtaining funds.
C. shows how the firm can use funds.
D. All of the above

Answer: D

5
The following are examples of equity financing except for
A. using owner’s savings.
B. admitting new partners.
C. borrowing from friends.
D. issuing shares to new investors.

Answer: C

6
Assessing investment projects and their returns is a function of
A. human resources management.
B. financial management.
C. operations management.
D. risk management.

Answer: B

7
Buying insurance is an example of
A. financial management.
B. operations management.
C. risk management.
D. information management.

Answer: C

8
Which of the following tasks is not performed by finance managers?
A. Assessing returns on investment projects
B. Developing budgets for the company’s expenditure in the next year
C. Monitoring the company’s cash flow
D. Planning for recruiting a new treasurer for the company

Answer: D

9
__________ is an example of debt financing and __________ is an example of equity
financing.
A. Using owner’s savings; applying loans from banks
B. Trade credit from suppliers; admitting new partners
C. Issuing shares to new investors; borrowing from friends
D. Borrowing from friends; trade credit from suppliers

Answer: B

10
A casual wear retailer plans to apply for a bank loan to finance its worldwide
promotion programme. Which of the following business functions are involved?
(1) Information management
(2) Financial management
(3) Operations management
(4) Marketing management

A. (1) only
B. (1) and (3) only
C. (2) and (4) only
D. (3) and (4) only

Answer: C