Exam 1: An Overview of Finance

The financial manager interacts jointly with many different individuals and departments within the firm.Forecasting and planning,as well as coordination and control,are two of the major areas of responsibility where this interaction takes place.

In the early 1900s the emphasis of managerial finance was on the legal aspects of mergers,the formation of new firms,and the various types of securities firms could issue to raise funds.

The major areas included in the study of finance are information technology,investments and managerial finance.

There are financial implications in virtually all business decisions,and non-financial executives must understand the financial implications of the decisions they make.

If you pursue a business career in a nonfinance profession you will not be exposed to finance concepts on the job.

Which of the following are NOT factors that have made the trend toward globalization mandatory for many businesses?

Most people in the United States have a thorough knowledge of finance as evidenced by their having high annual savings rate and a well-developed retirement plan.

During the depression era of the 1930s,the emphasis of managerial finance was developing sophisticated analytical models used to determine the liquidity and value of firms.

To achieve success in the financial services industry,one needs a knowledge of the factors that cause interest rates to rise and fall,the regulations to which financial institutions are subject,and the various types of financial instruments.

How will knowledge in the area of investments help you in your personal life?

What major factor(s)led to the U.S.economic woes which started in 2007?

Managerial finance entails making decisions about

The financial manager must execute his or her duties independent of the other activities of the firm in order to properly maximize the value of the firm.

A basic knowledge of finance will help you with your personal investments by helping you understand

The three main functions in the investments area are sales,the decisions that firms make concerning their cash flows,and determining the optimal mix of securities for a given investor.

In the early 1900s,the investments arena was dominated by a small group of very wealthy investors and opulent corporations.

The average American is knowledgeable about personal finance and tends to manage their retirement needs and debt levels responsibly.

Which of the following is a correct statement?

The electronic revolution has not really caught on in finance,primarily because finance decision making is a localized,private function that a firm does not wish to disclose to outsiders.

In general,the role of the financial manager is to plan for the acquisition and use of funds in order to maximize the value of the firm.