Renz Emille D.

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ITMAWD21

MULTIPLE CHOICE:

1. A.
2. D.
3. C.
4. C.
5. D.

SHORT ANSWER:

A financial manager is responsible for making financial decisions. It is critical to make informed
judgments regarding when, where, and how a company should obtain funding. Money can be obtained
in a variety of ways and through various routes. In general, an appropriate equity-to-debt ratio must be
maintained.

A company's capital structure is the combination of stock and debt capital. Earning profit or a
favorable return is a common goal of all enterprises in Dividend Decisions. However, in the event of
profitability, the essential duty of a financial manager is to determine whether to distribute all earnings
to shareholders, retain all profits, or give part of the profits to shareholders while keeping the other half
in the organization.

Maintaining a firm's cash position is critical for avoiding insolvency. The profitability, liquidity,
and risk of a company are all linked to current asset investments. It is critical to invest sufficient funds in
current assets to maintain a balance between profitability and liquidity. However, because present
assets do not generate revenue for a corporation, careful calculations must be made before investing in
them.