E4 Strategy, markets and fintech

Written by Saad Rahman (ACCA)

ACCA · New at Expertise level · 8 questions

Name: ____________________ Date: ____________

What does shareholder wealth maximisation take into account that profit maximisation often ignores?
- A The office size
- B The timing and risk of returns
- C The number of employees
- D The audit fee
A share price rises from $5.00 to $5.60 and a dividend of $0.20 is paid. What is the total shareholder return?
- A 12%
- B 11.2%
- C 4%
- D 16%
Which measure is used to assess the achievement of financial objectives?
- A Staff turnover only
- B Span of control
- C Return on capital employed
- D Office rent
Which is a feature of a corporate bond market compared with a stock market?
- A It raises equity with residual returns
- B It sets tax rates
- C It is only for short-term money
- D It raises debt with fixed returns
Peer-to-peer lending platforms are an example of:
- A Government policy
- B Fintech changing how finance is provided
- C A tax relief
- D A traditional bank loan
Which of these is a money market instrument that is a discount instrument?
- A A treasury bill
- B An ordinary share
- C A long-term bond
- D A debenture
A business grows faster than its working capital can support. This is:
- A Gearing
- B Over-capitalisation
- C Factoring
- D Overtrading
Under agency theory, which problem arises?
- A Shareholders manage the company
- B Managers may act in their own interests, not the shareholders'
- C Auditors set strategy
- D Lenders own the shares

Answer key

1. B, 2. D, 3. C, 4. D, 5. B, 6. A, 7. D, 8. B