. Answer all questions:

1. The main goal of the financial manager is:

a. Maximizing the profit

b. Minimizing the cost

c. Maximizing shareholders wealth

d. Maximizing the sales revenues

2. The main decisions that should be made by the financial manager are:

a. operations decisions

b. pricing decisions

c. investment decisions, financing decisions, and working capital management decisions

d. all the above

3. To which of the following, the higher the better statement is not applicable?

a. accounts receivable turnover ratio

b. return of equity ratio

c. debit to equity ratio

d. total assets turnover ratio

4. In which case of the following, the high inventory turnover ratio is not necessarily a good signal:

a. when the company reduces the goods price to increase the sales

b. when the demand level increases

c. when the inventory turnover ratio is higher than 2

5. Decision making rule for the NPV is:

a. accept the project if NPV>0

b. accept the project if NPV>1

c. reject the project if NPV=0

d. accept the project if NPV<1

d. none of the above