Profitability Management
Working Capital Management
Cash flow management
Global financial management
Random
100
What is the main objective of profitability management?
To maximise profits
100
What is working capital?
Current assets minus current liabilities.
100
What is cash flow?
The movement of cash into and out of a business.
100
What is an exchange rate?
The value of one currency compared with another.
100
What is the chemical symbol for gold?
Au
200
True or False: Profitability management focuses on the day-to-day cash available to pay bills.
False
200
A business has current assets of $300,000 and current liabilities of $100,000. What is its current ratio?
3:1
200
True or False: A profitable business can experience cash flow problems.
True
200
What is hedging used for?
To reduce exchange rate risk.
200
What is the capital of Iceland?
Reykjavik
300
Name one profitability strategy.
Expense minimisation, pricing strategies, or revenue controls.
300
A business has a current ratio of 0.8:1. What does this suggest?
The business may experience liquidity problems because current liabilities exceed current assets.
300
What is factoring?
Selling accounts receivable to a finance company to receive cash immediately.
300
A company imports machinery from Europe. The Australian dollar falls by 15%. Identify one likely financial consequence.
The machinery becomes more expensive, increasing business costs.
300
Bhutan
400
Which financial ratio measures profitability?
Net profit ratio or gross profit ratio.
400
Name the two of the three main current assets involved in working capital management.
Cash, debtors (accounts receivable), and inventory.
400
Which cash flow strategy involves selling an asset and then renting it back from the purchaser?
Sale and leaseback
400
A business exports products overseas and the Australian dollar rises. What is the likely impact?
Exports become more expensive for overseas buyers, potentially reducing sales.
400
Who is the captain of the socceroos
Mathew (Maty) Ryan
500
A business wants to increase profitability without increasing sales. Which strategy would be most effective and why?
Expense minimisation, because reducing costs increases profit even if revenue remains the same.
500
Why can holding excessive inventory create working capital problems?
It ties up cash that could be used elsewhere in the business and increases storage costs.
500
Why might a rapidly growing business experience cash flow problems?
Growth often requires additional inventory, staff, and expenses before cash is received from customers.
500
An Australian clothing retailer imports products from overseas. The Australian dollar falls. What is the likely impact on the business?
Import costs increase, which may reduce profits or force the business to raise prices.
500
Seismograph