Money Matters LAP Questions 11-20

The cash conversion cycle should be

as short as possible

Determining which projects a business should invest in is known as

capital budgeting

Which of the following is a key component of managing working capital

cash conversion cycle

Assets a company already owns and can use to finance a new venture are called

equity

When return on capital is positive, the company is

growing in value

A company's current balance of assets and liabilities falls under the focus of

working capital management

The finance function is usually responsible for which of the following processes:

Budgeting

Which of the following is NOT a capital investment decision:

How to manage cash flow

Which of the following is a measure of how well a business generates cash flow:

Return on capital

The finance function would definitely be involved in a decision regarding

new business projects and strategies