NAME: JOSON ,CHRISTELLE MAE G.

SECTION: OLTA311E005

PRELIM EXAM IN FINANCIAL MANAGEMENT

1. As a finance manager, how does the investment decision and financing decision impact the
value of the business?
As a finance manager, I will be a responsible when it comes to finance and take cares of all the
important of financial functions. and know how to decide the ratio between debt and equity
because it is important to maintain a good balance between debt and equity. As a finance
manager I will meet the necessity of the business it is important to have enough cash and
liquidity.

2. Is it true that a finance manager is one of the important players in the field of the financial
function? Does he or she should have full knowledge of accounting, finance, economics and
management? Explain why?
Yes, finance manager is the important in the field of financial function because if you want start
or run a business, you will need excellent knowledge of financial management. A financial
manager he/she know how to maintain enough supply of funds of the organizations, he/she
ensuring shareholders supply of funds for the organizations.

3. Explain the major function of finance manager?

The major function of finance manager Estimating the amount of capital required, Determining
Capital Structure, Choice of Sources of Funds, Procurement of Funds, Utilization of Funds,
Disposal of Profits or Surplus, Management of Cash, Financial Control.

4. What is financial management within the company and the organization?

Financial management within the company it should be have professionals plan, organize and
control all the transactions in a business. Financial management within in the organizations it
helps in funds allocation. Provide insights to make critical financial decisions.

5. Define financial management?

Financial management is about maintenance and creation of economic value or wealth.
Financial management refers to diplomatic planning, organizing, directing, supervising, and
financial undertaking in an organization.

6. What do you mean by profit maximization in financial management?

Profit maximization this is a goal of a business or an individual is profit maximization. A state
where marginal cost is equal to marginal revenue.

7. What is the importance of financial management?

The importance of financial management are profit maximization, proper mobilization, reduce
risks, high efficiency and balanced structure.

8. Distinguish wealth maximization and profit maximization?

NAME: JOSON ,CHRISTELLE MAE G.
SECTION: OLTA311E005

Wealth maximization it consists of activities that manage the financial resources to increase the
value of the stakeholders. While the profit maximization it consists of the activities that manage
the financial resources intending to increase company’s profitability.

9. Explain the different approaches to finance management?

Forecasting financial requirements, acquiring necessary capital, investment decision, cash
management and interrelation with other departments.

10. As a financial manager, how important is the financial decision when it comes to financial
management?
As a financial manager we should be a decision making because it is very sensitive we should be
analyzing the external and internal variables that can affect the normal development of
company business.