CS Professional Important Financial Management Theory question exam paper set 1
Financial Management Theory question
(i)It is not always necessary that inventory is held for smooth manufacturing andsales operations.
(ii) Capital rationing does not always lead to optimum results.
(iii) Corporate taxation creates incentive for advancement to the company byutilising borrowed funds for financing its growth schemes.
(iv) Financial gearing is a double-edged sword.
(v) Financial policy and corporate strategy are most significant concerns oftop management.
(c) How do firms manage economic risk due to fluctuations in forex market?