What does financial planning entail?

Financial planning involves setting goals, assessing resources, and creating strategies to achieve financial objectives effectively.

Fill in the blank: Risk management aims to minimize potential losses and safeguard assets through strategies such as ___.

Insurance, diversification, and hedging.

True or False: Capital budgeting is concerned with short-term investment decisions.

False. Capital budgeting focuses on evaluating and selecting long-term investment projects.

What is the primary focus of corporate finance?

Corporate finance focuses on how companies raise, invest, and manage capital to enhance shareholder value.

Fill in the blank: The scope of public finance includes the management of government ___ and expenditures.

Revenue.

True or False: Investment analysis is mainly concerned with the tax implications of investments.

False. Investment analysis focuses on evaluating investment opportunities to determine their potential for providing returns.

What is the role of financial markets in an economy?

Financial markets facilitate the allocation of capital efficiently and play a crucial role in economic growth.

Fill in the blank: Budgeting is essential for developing short-term and long-term financial plans that align with a firm’s ___ and goals.

Strategies.

True or False: Global finance only deals with domestic economic policies.

False. Global finance focuses on macroeconomic aspects of international trade and capital flows between countries.

What is the significance of fiscal policy in public finance?

Fiscal policy involves the use of taxation, expenditure, and borrowing to influence economic factors such as growth, employment, and inflation.

Fill in the blank: Cost control measures are implemented to improve operational ___ and reduce costs.

Efficiency.

What are the main components of risk management in finance?

Risk management involves identifying, assessing, and mitigating risks related to market conditions, credit, liquidity, and operational factors.