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Question No 1: (A). Sohar Company is doing manufacturing business in Oman. Recently, it started spending funds to acquire modern technology which will improve the
Question No 1: (A). Sohar Company is doing manufacturing business in Oman. Recently, it started spending funds to acquire modern technology which will improve the quality of products that leads to increase its sales. This development will positively influence the investors and help to maximize the market value of company shares. Requirement: (i) Which objective of Financial Management will be achieved by Sohar Company by above development? (ii) Explain any two arguments in favor of such objective. (3 Marks) (B ) Agency is a branch of economics relating to the behavior of principals (such as owners) and their agents ( such as managers). Why do conflicts arise between owners and managers in companies and what will be its effect on the interests of management? Explain. (3 Marks) (C) At present the collection management of receivables of ABC Company is very weak. The company wants to improve it and needs your help. What are the suggestions do you give to improve the collection management of ABC Company especially in the following areas? (4 Marks) (i) Delay in collection of receivables (ii) Delay in sending invoices to customers (iii) Customers complaints on products (iv) Lack of training for staff
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