What does good financial management imply?

4

(a)

Discuss in brief the importance of financial management.

4

(a)

A capital budgeting decision is capable of changing the financial fortune of a business.Do you agree? Why or Why not?

4

(a)

Explain any four points that highlight the importance of financial planning

4

(a)

Distinguish between fixed capital and working capital.

4

(a)

Explain the following on factors affecting dividend decision
(i) Stability of earnings
(ii)Growth opportunities
(iii) Cash flow position
(iv) Taxation policy 

6

(a)

What is meant by financing decision? State any four factors affecting the financing decision 

6

(a)

Explain the following as factors affecting the choice of Capital Structure.
(i) Cash flow position
(ii) Cost of equity
(iii) Floatation costs
(iv) Stock market conditions

6

(a)

Why is an adequate amount of working capital required in an enterprise?

6

(a)

Explain the following as factors affecting the requirements of fixed capital.
(i) Scale of operations
(ii) Choice of technique 
(iii) Technology upgradation
(iv) Financing alternatives

6

(a)