1. Write about External Growth through Mergers. There are many advantages of embracing external growth through mergers. What do you think would be the implications of external growth through mergers as compared to inorganic growth?

2. Organizations today have gone for different means of sourcing for financing. How do you determine the suitability of financing options for your business activities?

3. At one time, your business entity might have had the need for short term funds. What methods did you use to raise the short-term finance? Are there any implications of short-term finance sources?

4. The organization you run is large enough. As a result, you cannot ignore capital budgeting function. How do you manage to keep the relationships of the goal of the company, financial management activities and capital budgeting roles?

5. Companies rely on Working Capital efficiency. In our course, a lot of stress was placed on the importance of working capital. Again, I have noted that the class tutoring mention that the expansion of sales could drain cash resources from the company. Please explain how and why this could occur. I would also be happy to understand the role of cash budget in managing the current assets of a firm and why a firm must match production with sales n an attempt to manage the working capital.

6. Most firms rely on financial ratios to make key business decisions. Do you use them in your organization? If you do, how important are they in making the business better?

Answer rating: 100% (QA)

Introduction Financial management is a role whose importance cannot be underrated It is through financial management that a firm can understand how it is faring It is through the financial management ... View the full answer