- 20 Marks
BMF – Nov 2022 – L1 – SB – Q2 – Basics of Business Finance and Financial Markets
This question involves defining corporate objectives and explaining key financial objectives, expectations from banks, and NPV method disadvantages.
Question
Organisations formulate financial plans and policies to guide financial managers on how to make effective financial decisions.
Required:
a. Define the term “Corporate Objective” and explain the THREE commonly used financial objectives in most companies. (10 Marks)
b. State THREE expectations of a bank on how a company should use its overdraft facility. (6 Marks)
c. State TWO disadvantages of the Net Present Value (NPV) method. (4 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Corporate Objective, Financial Decisions, Net Present Value, Overdraft Facility
- Level: Level 1
- Topic: Basics of Business Finance and Financial Markets
- Series: NOV 2022
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