Q: How do banks assess the risk appetite of each customer in terms of choosing the right investment?
A: Risk appetite is the ability to absorb or undertake a level of investment risk by the investor. This…
Q: How would you define profit planning? What is the importance of profit planning?
A: a) Profit planning is a progression of steps being taken to arrive at an ideal level of profit. Such…
Q: What is Profitability?
A: Profits means the excess of revenue earned during a period over the expenditure incurred to generate…
Q: What is “fair value”? Consider whether it is really helpfulwhen reporting financial results. Give…
A: Fixed assets: These include all the assets that are of tangible nature and have an expected useful…
Q: What does this say about the company's profitability?
A: We are provided with three profitability ratios here - net profit margin ratio, ROA and ROE - and we…
Q: Critically evaluate, why efficient distribution of financial information is so important to market…
A: The information availability is always crucial to the shareholders, traders and investors. Market…
Q: Which is risk in the context of financial decision making and performance? Does performance…
A: Risk in the perspective of financial decision making and performance differs as the company faces…
Q: why net present value is considered to be superior to internal rate of return as an investment…
A: Investment- The purchase of an asset in order to generate income or capital gain is referred to as…
Q: goal of financial management is to maximize the shareholders' value. What are the pros and cons o
A: Basic objective of financial management is to increase the value of shareholders and to increase the…
Q: What is market efficiency? How do we characterise efficiency in financial markets? Briefly explain…
A: Market efficiency refers to the degree to which market prices reflect all available, relevant…
Q: how present value is useful in economic decision making
A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…
Q: explain how the idea of value creation under stakeholder theory differs from that under positive…
A: Here discuss about the details of the difference between the stakeholders theory with the positive…
Q: How behavorial bias affect investment behavior?
A: Behavioral bias is the belief by the investors that unknowingly affects the investors investment…
Q: What is risk, and how does it affect decisions about investment?
A: Risk and return are related to each other while making investment.
Q: Discuss how the Accounting Rate of Return as an investment appraisal method is better than the Net…
A: Accounting ROR or ARR and Net Present Value(NPV) are tools that are used to make selection among…
Q: What are the benefits of Profitability Analysis?
A: Profitability analysis is a tool used by the firm to analyze cost and revenue to know whether the…
Q: What is the difference between business risk and financial risk?
A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…
Q: What is Competitiveness and how it affects financial market. Identify the risks that may arise.
A: The search for long-term competitive advantage is an important part of all business activity – one…
Q: What is the main goal of the financial manager? How does the risk return trade-off relate to the…
A: For a given level of risk, there is a level of return. When the return from an investment rises,…
Q: Analyze the disadvantages of financial performance measures and the advantages of non
A: Disadvantages of financial performance measures 1 They indicates short term performance measures. 2…
Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…
A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…
Q: Which financial statements are more useful to consumers than others when it comes to cash flow…
A: The question tells about financial statements are more useful to consumers than others when it comes…
Q: What are the basic steps that you must take to determine if you are able tomake a profit?
A: Profitability is a basic need and objective of every business. If company can able to make the…
Q: What can a person try to do to genuinely control spending to better achieve financial success?
A: Financial performance should be converted into a range of financial goals, properties, or net worth…
Q: analyze
A: Profitability analysis refers to allocation of expenses & analyzing the profits or earnings of…
Q: What are the issues that a finance manager considers in taking investment decision?
A: The term investment decision refers to the decisions that are related to how the funds of the…
Q: Explain how differential weight to losses and gains effect investment decisions?
A: Prospect Theory assigns differential weight to losses and gains for making investment decisions.
Q: Profit maximization translated into wealth maximization. Discuss
A: Wealth Maximization consists of a set of activities that manage the financial resources intending to…
Q: The decision making about profit sharing is Select one from the following options. O long-term…
A: Financial decision-making is the decision about the different sources of funds. The short-term…
Q: What are some limitations of financial performance measures?
A:
Q: What is risk? Why must risk as well as return be considered by the financial manager who is…
A: Risk is associated with every business it is one of the important functions of the management to…
Q: What is the risk in the context of financial decision making and performance?
A: Financial decision making: Financial decision making denotes to decision making concerning financial…
Q: How does the risk return trade-off relate to the financial manager's main goal?
A: The main goal for a financial manager is to generate the maximum value of the firm to its owners.…
Q: What is the relationship between profit and ethics?
A: Every business entity who is operating whether it is manufacturing business or service company want…
Q: s it important to identify what costs will be eliminated in the conduct of finan
A: Turnaround recovery ways are a variety of measures that corporations use to get over a amount of a…
Q: How We use quantitative data to manage risk and create investment vehicles
A: We can define risk as the variations in return. While investing in a security, it is very important…
Q: What are the difficulties and problems when it comes to using the free cash flow valuation model
A: The free cash flow valuation model is one of the most used and one of the most popular valuation…
Q: What unique problems do not-for-profit businesses encounter in financial analysis and planning? What…
A: Financial analysis: Financial analysis is a common method used by financial managers to access the…
Q: What is the difference between future value and present value? Which approach is generally preferred…
A: Present value and future value are considered while taking investment decisions. The future values…
Q: Does the Profitability Analysis play an important role in decision making? How?
A: Yes, Profitability analysis helps the decision-maker in making decisions as it helps in the…
Q: what is return on investment capital and profitability analysis?
A: Both return on investment and profitability analysis are profitability ratios
Q: What are some qualitative factors that analysts should consider when evaluating acompany’s likely…
A: Qualitative factors are the factors which are non quantifiable for the examination of operations and…
Q: What is the relationship between financial decision-making and risk and return? Would all financial…
A: Almost every financial decision involves a risk-reward trade-off of some type. The higher the…
Q: What’s the impact of risk on financial markets and institutions profitability?
A: Financial market is the place where securities like stocks and bonds along with other financial…
- What methods could be used in profit planning?
- How do we use profit planning in
financial risk management ?
Step by step
Solved in 2 steps
- what is risk and return in the context of financial decision making?Which is risk in the context of financial decision making and performance? Does performance increase or decrease with the type of risk you identify with?What is the main goal of the financial manager? How does the risk return trade-off relate to the financial manager's main goal?
- What is the relationship between financial decision making and risk & return? Would all financial managers view risk-return trade-offs similarly?How does the risk return trade-off relate to the financial manager's main goal?Please answer the question as follow? Profit Maximize and Wealth Maximize, what is difference? Explain. Definition and important of financial management. Explain.