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CHAPTER 14
FINANCIAL GOALS AND INFORMATION SYSTEMS
TRUE OR FALSE QUESTIONS
(Correct answer indicated by T for True and F for False answers)
be an ongoing aspect of the overall management of the business.
profit organizations.
organization wants to achieve. Its action plan shows how it is going to get there.
such as food and beverage inventories.
sources and mix of outflow uses of funds.
maximization of stockholder wealth.
the shortest possible time.
consideration every possible risk.
short-run over long-run profitability.
maximization financial goal.
return is less than the cost of financing.
highest dividend payments and increasing the market value of the company’s shares.
important than earnings per share.
share.
the market price of its stock, and that price cannot be influenced by external economic
factors.
estate holdings.
organization’s department heads.
department heads of the business organization.
its department heads is known as goal congruence.
information production, and variance analysis.
information gathering system.
MULTIPLE CHOICE QUESTIONS
(Correct answer indicated by asterisk)
1. Another term for a company’s statement of business purpose is a:
2. A company’s statement of business purpose can:
3. Which of the following is not an objective of financial management?
4. Which of the following is not true of having profit maximization as a financial goal?
5. The market price of a company’s shares is established by a number of factors. Which of the
following is not one of those factors?
6. One of the following is not a disadvantage of having the maximization of stockholder wealth
as a financial goal:
7. Which of the following is not a characteristic of management by objectives (MBO)?
8. Which of the following is not an example of a social goal?
9. In proper sequence, starting at the bottom of the pyramid, the four levels in the decision
making process is:
10. Which of the following is not a true statement about the manager’s responsibility in the
decision making process?
11. Relevant information normally increases the decision maker’s knowledge, but:
12. The decision making process normally involves the following sequence of steps:
13. Which of the following is not true of information in the decision making process?
14. Management by exception is:
