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BMF – Mar July 2020 – L1 – SA – Q12 – Basics of Business Finance and Financial Markets

Identifying a financial decision that can hinder organizational objectives.

Which of the following financial decisions can impede the achievement of organizational objectives?
A. Investing short term cash surpluses
B. Rewarding equity holders appropriately
C. Protecting the organization against financial risks
D. Financing long-term expenditure with short-term sources of funds
E. Maintaining a balance between long-term and short-term finance

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BMF – Mar July 2020 – L1 – SA – Q12 – Basics of Business Finance and Financial Markets

Identifying a financial decision that can hinder organizational objectives.

Which of the following financial decisions can impede the achievement of organizational objectives?
A. Investing short term cash surpluses
B. Rewarding equity holders appropriately
C. Protecting the organization against financial risks
D. Financing long-term expenditure with short-term sources of funds
E. Maintaining a balance between long-term and short-term finance

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