FM A Financial management function

Written by Mahnoor Sheikh (ACCA)

ACCA · Financial Management · 6 questions

Name: ____________________ Date: ____________

Which are the three key decisions of financial management?
- A Investment, financing and dividend decisions
- B Audit, tax and legal decisions
- C Hiring, training and pay decisions
- D Marketing, production and sales decisions
What is the usual primary financial objective of a company?
- A Maximising shareholder wealth
- B Minimising all costs
- C Maximising employee numbers
- D Maximising short-term profit only
What is the agency problem?
- A Directors are always honest
- B Shareholders do not receive dividends
- C Companies cannot borrow
- D Managers may act in their own interests instead of the shareholders'
Which of these can reduce the agency problem?
- A Share options linked to performance
- B Hiding results from shareholders
- C Fixed pay with no targets
- D Removing all monitoring
Value for money means a combination of:
- A Profit, loss and tax
- B Debt, equity and cash
- C Economy, efficiency and effectiveness
- D Price, product and place
Which statement about stakeholder objectives is correct?
- A They are always the same
- B Only shareholders have objectives
- C They can conflict with one another
- D They never affect decisions

Answer key

1. A, 2. A, 3. D, 4. A, 5. C, 6. C