BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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concerned with growing the business
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concerned with increasing profitability
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concerned with increasing efficiency
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concerned with managing cash flow and meeting current debts
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Detailed explanation-1: -The short-term objective of Financial Management is to procure financial resources at an affordable cost thereby increasing the return to the shareholders in the form of Earnings Per Share (EPS). EPS comprises two elements namely Dividend per share (DPS) and Retained Earnings per share (REPS or Reserves per share).
Detailed explanation-2: -Short-term financing is aimed to meet the demand of current assets and pay the current liabilities of the enterprise. In other words, it helps in minimizing the gap between current assets and current liabilities. There are different means to raise capital from the market for small duration.
Detailed explanation-3: -Short-term financial management, simply put, is anything less than a year out. Though some long-term finances may be part of the short-term equation (such as office mortgage payments and long-term business costs), this type of financial management usually stays under the year mark.
Detailed explanation-4: -The cash inflows received through short-term bank loans and the cash outflows used to repay the principal amount of short-term bank loans are reported in the financing activities section of the statement of cash flows.