Give answers to the following questions: 1. Describe the primary objective and the main goals of the financial management. 2. What is the balance sheet? What information does it show? Describe its basic items.

27 марта 2025
Английский язык

Условие:

Give answers to the following questions:

1. Describe the primary objective and the main goals of the financial management.

2. What is the balance sheet? What information does it show? Describe its basic items.

3. How can the firm raise capital? Explain the main sources of financing.

4. Define an annuity and a perpetuity. Describe the uses of annuity and perpetuity in corporate finance.

5. Describe the basic types of financial ratios. What information do they give about the company?

6. Describe the basic priciples of investment project evaluation.

7. Define leverage. Describe its effects on the company risk and profitability.

8. Describe the cost structure of the firm. What are the fixed and variable costs?

9. Define financial risk. What makes the financial risk higher?

10. What is a bond? Describe its basic elements.

Решение:

1.In simple terms objective of the financial management is to maximize the value of firm, however it is much more complex than that.

Goals of the financial management may be broadly divided into two parts such as:

1. Profit maximization

2. Wealth maximization.

Main aim of any kind of economic activity is earning profit. A business concern is also functioning mainly for the purpose of earning profit. Profit is the measuring techniques to understand the business efficiency of the concern. Profit maximization is also the traditional

and narrow approach, which aims at, maximizes the profit of the conce...