Best Financial Management Questions and Answers (Q&A) - ProProfs Discuss

Why is wealth maximization more important than profit maximization when it comes to financial management?

Anika Nicole, Wordsmith
Answered: Jun 06, 2018

Both profit maximization and wealth maximization are important parts of financial management as both are necessary for business assessment and making way for sustainable...Read More

4 Answers

1688 views

What is the best criterion in evaluating the performance of a financial manager?

F. Lopez
Answered: Sep 17, 2019

Maximizing shareholder wealth, and Maximizing the company share market price. As the name suggests, a financial manager manages the finances of a company. It helps employees learn the budget, and...Read More

2 Answers

1481 views

What are the characteristics of a company limited by shares?

F. Lopez
Answered: Sep 17, 2019

There exists an agency relationship between corporate management and shareholders, Shareholders can vote at the company's Annual General Meeting, and A company is a separate legal entity apart...Read More

2 Answers

781 views

What is the payback period for this investment?

E.Ronald
Answered: Jan 03, 2018

When you conform to what others believe or conform to the behavior of others, it is usually a result of group pressure whether it is real or imagined. It is a social influence that changes a...Read More

2 Answers

615 views

Which goals would not serve as good criteria for evaluation of financial performance?

John Smith
Answered: Apr 24, 2024

Minimizing Corporate Tax
Slashing costs
Beating the Competition
Maximizing Profits
Maximizing market share.

None take into account investors exposure to financial risk...Read More

1 Answer

504 views

What can the market value of a firm affect?

John Smith
Answered: Apr 24, 2024

Investors perceptions of the firm.
General economic conditions
The investments a firm s managers may make
The dividend payments made by the firm
Rumor, innuendo and gossip.

1 Answer

328 views

What is the difference between a commodity market and a capital market?

F. Lopez
Answered: Sep 17, 2019

There can be many correct answers to this question, as there are several differences between the commodity market and capital market. The commodity market trades in the economic sector. Instead...Read More

2 Answers

277 views

What is a bank CD?

F. Lopez
Answered: Sep 17, 2019

A certificate of deposit with interest payments that are placed with a bank for a specific period. CD in Bank CDs stands for a certificate of deposit. Not only do banks sell them, but they are...Read More

2 Answers

269 views

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