Ch.15 Finance in Strategic Planning Test Questions & Answers - Test Bank | Health Biz Strategy 2e Moseley by George B. Moseley. DOCX document preview.
CHAPTER 15 TEST BANK
Chapter 15. Finance in Strategic Planning
1. Why is the finance function so important in planning and executing strategies?
2. The finance department has four traditional areas of responsibility in an organization. Identify at least three of them.
3. Describe four contributions that the finance function can make to the strategic planning process.
4. Along with rating firms, the book encourages organizations to integrate their financial management and strategic planning. Identify the two ways in which this can occur.
5. Why does an organization need to worry about the capital demands of its large-scale, non-strategic projects?
6. Explain how to calculate the net present value (NPV) of a strategy proposal.
7. From what sources might the investment capital for a large established organizations originate?
8. From what sources might the investment capital for a new business venture originate during its first three to five years?
9. What is the “cost of capital” of an organization and how is it determined?
10. Explain three differences between debt and equity as sources of capital for an organization.
11. What are some criteria that should be taken into consideration in allocating available capital among several strategic proposals?
12. Define the term “creditworthiness” as it applies to corporate financial management.
13. What measures can an organization take to enhance its creditworthiness?
14. Identify the three financial metrics that organization leaders should always be monitoring.
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