Practice Key Areas (12.6.1) - Decision-Making in Organizations - Management 1 (Organizational Behaviour/Finance & Accounting)

Practice: Key Areas

Lesson 12.6.1Decision-Making in Organizations

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10 questions

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Quiz
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6 sample questions

Question 1.
What is capital budgeting?
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Think about investments that last for years.
Question 2.
What does working capital management focus on?
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Consider cash flow and daily operations.
3Question 3.
What is the main focus of capital budgeting?
- Short-term profits
- Long-term investment decisions
- Daily operational expenses
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Consider where a company places its large investments.
4Question 4.
True or False: Financing decisions can only involve acquiring loans.
- True
- False
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Remember the balance between debt and equity.
Question 5.
A firm is considering investing in new technology that requires a capital expenditure of $500,000, expected to generate a return of $150,000 annually for five years. Determine the NPV if the discount rate is 10%.
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Remember the formula for calculating NPV and apply the discount factor.
Question 6.
Imagine a company that needs to decide between issuing bonds or stocks to raise $1 million. Discuss the potential advantages and disadvantages of both options and their impact on the company's long-term financial health.
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Consider long-term implications and immediate advantages of cash flow.

6 more questions in this section. Enroll free to practise them all.