Reference no: EM133012304

Problem 1: Which of the following are elements in financial management decision?

a. Capital structure and capital budgeting.

b. Working capital management, capital budgeting and capital structure.

c. Working capital management, dividend payment and capital budgeting.

d. Working capital management and capital budgeting.

e. Working capital management and dividend payment.

Problem 2: The difference between working capital management and capital budgeting is:

a. As both deal with capital, there are no material differences between the functions.

b. Working capital focuses on current assets and liabilities, while capital budgeting concentrates on long-term project evaluation.

c. Working capital management concentrates on maximizing current assets, while capital budgeting concentrates on minimizing current liabilities.

d. Working capital management evaluates projects that add value to a firm, while capital budgeting focuses on expanding current assets of a firm.

e. Working capital management has a long term focus, while capital budgeting is focused on a short-term timeframe.