The primary objective of financial management is to maximize shareholder's wealth through optimal capital structure and proper utilization of funds. | Card: 2 / 30 |
Fill in the blanks: Financial management is concerned with the planning, raising, controlling, and administering of funds used in the ___. | Card: 3 / 30 |
True or False: The safety of funds in financial management refers to minimizing the chances of risk in investments. | Card: 5 / 30 |
Fill in the blank: A sound and economical combination of shares and debentures is necessary to maintain ___ capital structure. | Card: 9 / 30 |
Riddle: I am a financial decision that determines how a company raises funds. I can involve debt or equity. What am I? | Card: 13 / 30 |
Fill in the blank: The risk associated with borrowed funds is known as ___ risk. | Card: 15 / 30 |
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Owner’s funds have no fixed repayment commitment, while borrowed funds must be repaid at a fixed time and incur interest regardless of profit. | Card: 18 / 30 |
The main factors include cost, risk, flotation costs, cash flow position, control considerations, state of capital markets, and the period of finance. | Card: 20 / 30 |
Fill in the blank: If existing shareholders want to retain complete control of the business, they should raise finance through ___ funds. | Card: 21 / 30 |
Riddle: I can help you grow, but too much of me can lead to trouble. I have a cost, and I often need to be repaid. What am I? | Card: 23 / 30 |
During a boom in the capital markets, which type of finance is easier to raise by issuing shares? | Card: 25 / 30 |
What is the relationship between the state of capital markets and the ease of raising finance? | Card: 27 / 30 |
During a boom, it is easier to raise finance through equity, while during a depression, it is easier to raise finance through debt. | Card: 28 / 30 |
Fill in the blank: The decision regarding how much profit to distribute as dividends and how much to retain should focus on maximizing ___ wealth. | Card: 29 / 30 |






