PART II - Matching Type, write the letters only / To which of the following terms does each of the given statements refer ? The utmost goal of an enterprise. 2. This goal of financial management takes into consideration the risk attached to the investments, when and how profits will be realized and quality and reliability of profits. 3. This goal of financial management intends to maximize the value of the firm's stocks by evaluating profits vis--vis earnings per share. 4. This goal of financial management is focused on the favorable contribution of an enterprise in the improvement of the lives of the people in the community. 7. The financial manager must help decide on the appropriate amount of property, plant and equipment to acquisitions. 8. A well-skilled financial manager can deter the effects of these unfavorable events by availing of the appropriate and adequate insurance for the firm, or by hedging in the derivatives market. 9. This is considered as the oldest, most common, and simplest form of business organization. 10. There can be an unfavorable situation when a manager owning a small portion of Corporate shares undertakes to have salary increases and perquisites at the cost of shareholders that are not managers. 11. In this situation, managers of firms acquired by the shareholders are terminated. Those managers, who are lucky to be retained, lose their independence and authority over his position. 12. Performance shares are given to managers based on their effectiveness in achieving the company goals. This of shareholders. 13. It was an exercise of shareholders involvement by sponsoring a proposal which must be voted at the annual shareholders' meeting, regardless of management's approval. 14. It is a statement of financial position. 15. It is a statement that shows the results of operations for a given period. 16. This statement is no longer required to be prepared because the statement of changes in equity includes the components of the statement of retained earnings. 17. In the cash flow statement, this activity is related to the generation of the principal revenue of the firm. 18 In the cash flow statement, this activity relates to cash flows from purchasing or selling long-term assets and other long-term investments. 19. In the cash flow statement, this activity relates to cash inflows or outflows involving owners (equity financing) and creditors (debt financing). 20. This item (what is this item), share capital and the reserves are the three basic components of Shareholders' Equity. formulating strategies and operative plans necessary to achieve the company's desired position. 7 The financial manager must help decide on the appropriate amount of property, plant and equipment to be acquired and determine the sources of funds to finance such acquisitions. 8. A well-skilled financial manager can deter the effects of these unfavorable events by availing of the appropriate and adequate insurance for the firm, or by hedging in the derivatives market. 9. This is considered as the oldest, most common, and simplest form of business organization. 10. There can be an unfavorable situation when a manager owning a small portion of Corporate shares undertakes to have salary increases and perquisites at the cost of shareholders that are not managers. 11. In this situation, managers of firms acquired by the shareholders are terminated. Those managers, who are lucky to be retained, lose their independence and authority over his 12. Performance shares are given to managers based on their effectiveness in achieving the company goals. This is a control mechanism for the managers to perform for the interest of shareholders. 13. It was an exercise of shareholders involvement by sponsoring a proposal which must be voted at the annual shareholders' meeting, regardless of management's approval. 14. It is a statement of financial position. 15. It is a statement that shows the results of operations for a given period. 16. This statement is no longer required to be prepared because the statement of changes in equity includes the components of the statement of retained earnings. 17. In the cash flow statement, this activity is related to the generation of the principal revenue of the firm. 18. In the cash flow statement, this activity relates to cash flows from purchasing or selling long-term assets and other long-term investments. 19. In the cash flow statement, this activity relates to cash inflows or outflows involving owners (equity financing) and creditors (debt financing). 20. This item (what is this item), share capital and the reserves are the three basic components of Shareholders' Equity. PART II - Matching Type, write the letters only / To which of the following terms does each of the given statements refer ? The utmost goal of an enterprise. 2. This goal of financial management takes into consideration the risk attached to the investments, when and how profits will be realized and quality and reliability of profits. 3. This goal of financial management intends to maximize the value of the firm's stocks by evaluating profits vis--vis earnings per share. 4. This goal of financial management is focused on the favorable contribution of an enterprise in the improvement of the lives of the people in the community. 7. The financial manager must help decide on the appropriate amount of property, plant and equipment to acquisitions. 8. A well-skilled financial manager can deter the effects of these unfavorable events by availing of the appropriate and adequate insurance for the firm, or by hedging in the derivatives market. 9. This is considered as the oldest, most common, and simplest form of business organization. 10. There can be an unfavorable situation when a manager owning a small portion of Corporate shares undertakes to have salary increases and perquisites at the cost of shareholders that are not managers. 11. In this situation, managers of firms acquired by the shareholders are terminated. Those managers, who are lucky to be retained, lose their independence and authority over his position. 12. Performance shares are given to managers based on their effectiveness in achieving the company goals. This of shareholders. 13. It was an exercise of shareholders involvement by sponsoring a proposal which must be voted at the annual shareholders' meeting, regardless of management's approval. 14. It is a statement of financial position. 15. It is a statement that shows the results of operations for a given period. 16. This statement is no longer required to be prepared because the statement of changes in equity includes the components of the statement of retained earnings. 17. In the cash flow statement, this activity is related to the generation of the principal revenue of the firm. 18 In the cash flow statement, this activity relates to cash flows from purchasing or selling long-term assets and other long-term investments. 19. In the cash flow statement, this activity relates to cash inflows or outflows involving owners (equity financing) and creditors (debt financing). 20. This item (what is this item), share capital and the reserves are the three basic components of Shareholders' Equity. formulating strategies and operative plans necessary to achieve the company's desired position. 7 The financial manager must help decide on the appropriate amount of property, plant and equipment to be acquired and determine the sources of funds to finance such acquisitions. 8. A well-skilled financial manager can deter the effects of these unfavorable events by availing of the appropriate and adequate insurance for the firm, or by hedging in the derivatives market. 9. This is considered as the oldest, most common, and simplest form of business organization. 10. There can be an unfavorable situation when a manager owning a small portion of Corporate shares undertakes to have salary increases and perquisites at the cost of shareholders that are not managers. 11. In this situation, managers of firms acquired by the shareholders are terminated. Those managers, who are lucky to be retained, lose their independence and authority over his 12. Performance shares are given to managers based on their effectiveness in achieving the company goals. This is a control mechanism for the managers to perform for the interest of shareholders. 13. It was an exercise of shareholders involvement by sponsoring a proposal which must be voted at the annual shareholders' meeting, regardless of management's approval. 14. It is a statement of financial position. 15. It is a statement that shows the results of operations for a given period. 16. This statement is no longer required to be prepared because the statement of changes in equity includes the components of the statement of retained earnings. 17. In the cash flow statement, this activity is related to the generation of the principal revenue of the firm. 18. In the cash flow statement, this activity relates to cash flows from purchasing or selling long-term assets and other long-term investments. 19. In the cash flow statement, this activity relates to cash inflows or outflows involving owners (equity financing) and creditors (debt financing). 20. This item (what is this item), share capital and the reserves are the three basic components of Shareholders' Equity