Financial managers should focus solely on meeting the financial needs of their firms in the short run, leaving the long-term financial issues to the top management.
Answer the following statement true (T) or false (F)
False
Historically, the most widely accepted goal of financial management has been to maximize the value of the firm to its owners. A socially responsible firm has an obligation to respect the needs of all stakeholders—not just its owners, but also its employees, customers, creditors, suppliers, and even society as a whole. Being socially responsible can be (and often is) a good strategy for achieving the goal of shareholder wealth maximization—especially if financial managers take a long-term perspective. See 9-1: What Motivates Financial Decisions?
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Under the direct method of reporting operating cash flows, a company computes the cash outflows for operating activities by adjusting the various expense accounts for changes in certain liability accounts and deferred revenues, and also eliminates certain "noncash" expenses or losses
Indicate whether the statement is true or false
A company that wants to excel at responsiveness should view service delivery and the handling of requests from the company's point of view.
Answer the following statement true (T) or false (F)
If a minor entered into a contract, and then ratified the contract after reaching the age of majority, which of the following is he or she exempt from?
A) duty of restoration B) duty of restitution C) necessaries of life D) infancy doctrine
Upon review of Johnson's Statement of Cash Flows, the following was noted: Cash flows from operating activities $ 15,000 Cash flows from investing activities 80,000 Cash flows from financing activities (60,000) From this information, the most likely explanation is that Johnson is
A) using cash from operations and selling long-term assets to pay back debt. B) using cash from operations and borrowing to purchase long-term assets. C) using its profits to expand growth. D) using cash from investors to provide for operations.