True or false about financial management

Exercise and reference answers

Questions

1. Statement is true

   Yes

   Statement

   Finance always comes at some cost.

2. Statement is true

   Yes

   Statement

   The dividend decision splits profit between payout and retention.

3. Statement is true

   No

   Statement

   Capital budgeting deals with day to day cash.

4. Statement is true

   Yes

   Statement

   Financial planning specifies where funds will come from.

5. Statement is true

   Yes

   Statement

   Poor planning can lead to wasteful spending.

Instructions

Decide whether each statement is true or false.

Explanation