CS Professional Important Financial Management Theory question exam paper set 5
Financial Management Theory question
(i)Financial sector acts as conduit for the transfer of financial resources fromnet savers to net borrowers.
(ii) Under capital rationing, the standard net present value (NPV) decisionrule no longer holds true.
(iii) Most businesses need cash funds to meet contingencies.
(iv) Apart from the retention of profits and capitalising the accumulatedearnings, the bonus shares serve several other objectives.
(v) Foreign exchange risk can be managed both internally and externally.