Part II Structure

Question 1

The Financial Manager is responsible for

Answer 1

investment decisions, financing decisions, short term financial planning, accounting and audit function in firm, and ensuring the financial welfare of the firm.

Question 2

What are the financial markets?

Answer 2

Money Market: short-term debt

Capital Market: long-term debt and equity

Question 3

Primary Markets are

Answer 3

where securities are sold to investors, money raised goes to the issuing firm, IPOs are held, and seasoned offerings are held

Question 4

Secondary Markets are

Answer 4

where investors trade securities with each other, money that is raised goes to seller of securities, share prices are made