Practice Finance Department (2.3.3) - Important Departments of a Commercial Organization

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9 questions

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2 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is one primary function of the Finance Department?
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Think about money management.
Question 2.
What do we call the ability to pay short-term debts?
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It starts with an 'L'.
3Question 3.
What is the primary responsibility of the Finance Department?
- Market research
- Manage financial activities
- Customer service
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Focus on what department deals with money.
4Question 4.
True or False: Profitability and liquidity are the same.
- True
- False
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What does each term refer to specifically?
Question 5.
A company has a monthly budget of $50,000. If the costs exceed this by 20% in one month, what financial issues might arise and how can the Finance Department address it?
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Think about how overspending impacts finances.
Question 6.
A business is consistently liquid but has not made a profit for three years. Analyze potential challenges this may pose.
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Consider long-term sustainability vs. short-term cash flow.

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