Republic of the Philippines
PALAWAN STATE UNIVERSITY
College of CCRD – Coron Campus
Puerto Princesa City
E4205: SPECIAL TOPICS IN FINANCIAL MANAGEMENT
Mid-Term Examination (70 points)
Name: __________________________ Course & Year: _____________
Rating: ___________________
______________________________________________________________________
Reminders: All students are expected to be academically honest. Cheating, lying and other
forms of unethical behavior will not be tolerated. Any students found guilty of any form
of cheating during examinations automatically will receive a grade of 5.0.
____________________________________________________________________________
TEST 1: MULTIPLE CHOICE
Direction: Select the correct answer for each of the following questions. Mark only one answer
for each item by putting a circle corresponding to the letter of your choice. STRICTLY NO
ERASURES ALLOWED.
1. Refers to the strategic planning, organizing, directing and controlling of financial
undertakings in an organization or an institute. It also includes applying management
principles to the financial assets of an organization, while also playing an important part in
fiscal management.
a. Financial Management c. Financial Decision-making
b. Financial Analysis d. Financial Strategic
2. This is the process of calculating the amount of capital that is required by an organization
and then determining its allocation.
a. Financial controlling c. Financial Analysis
b. Financial Planning d. Financial Management
3. This is one of the key activities in financial management. Its main role is to assess whether
an organization is meeting its objectives or not.
a. Financial Decision-making c. Financial Management
b. Financial Planning d. Financial Controlling
4. This involves investment and financing with regards to the organization, whether they
should sell new shares or how the profit should be distributed.
a. Financial analysis c. Financial Decision-making
b. Financial planning d. Financial Management
5. Which of the following statement is correct?
a. Financial plan determining the amount of capital required
b. Financial plan determining the capital organization and structure.
c. Financial plan framing of the organization’s financial policies and regulations
d. All the above statement is correct
6. Why is financial management important?
a. Encourages employees to save money, which helps them in personal
financial planning.
b. Helps organizations in effectively utilizing and allocating the funds received or
acquired.
c. Provides economic stability and help to increases the overall value of the
firms or organizations.
d. All of the above
7. It is not only managing a company’s finances but managing them with the intention to
succeed – that is, to attain the company’s goals and objectives and maximize shareholder
value over time.
a. Strategic Financial Management
b. Financial Management
c. Strategic Analysis
d. Operational Strategic
8. Money is required for various purposes in the firm such as payment of salaries and bills,
maintaining stock, meeting liabilities and the purchases of any materials or equipment.
What function of the Financial Management is it?
a. Formation of capital structure c. Investing the capital
b. Effective management of money d. Allocation of profits
9. It is another function of the Financial Management Department to invest money in order to
raise more capital and gain regular returns.
a. Financial control c. Allocation of profits
b. Investing the capital d. calculating the capital required
10. It is the process of defining objectives precisely, identifying and quantifying available and
potential resources and writing of specific business financial plan.
a. Planning c. Budgeting
b. Managing and Risk Assessing d. Establishing on-going procedure
11. It is the individual’s capacity for thinking conceptually, imaginatively, systematically, and
opportunistically with regard to the attainment of success in the future.
a. Strategic Operation c. Strategic Thinking
b. Strategic Planning d. Strategic Analysis
12. Strategic thinking involves looking towards the future with an appreciation that present
moment decisions will have impact on the future.
a. Future Oriented c. Success Oriented
b. Cognitive d. Conceptual
13. Strategic thinking employs mental process that are conceptual, systematic, imaginative
and opportunistic behavior to the attainment of success in the future.
a. Success Oriented c. Cognitive
b. Future Oriented d. Strategic
14. It is a process that involves researching an organization’s business environment within
which it operates.
a. Strategic Planning c. Strategic Thinking
b. Strategic Analysis d. Strategic Operation
15. It is a tool which helps you to understand the macro environment in which an organization
functions.
a. SWOT Analysis c. Porter’s Five Theory
b. PEST Analysis d. Sana All
16. Companies often do not understand the differences between________ and ________.
a. Decision-making & Strategy c. Operational Efficiency & Strategy
b. Planning & Decision-making d. Operational efficiency & Planning
c.
17. Is an organization’s process of defining its strategy or direction and making decisions on allocating
its resources to pursue this strategy?
a. Strategic Planning c. Strategic Thinking
b. Strategic Analysis d. Strategic Operation
18. Which of the following statements is true?
a. Industry boundary is important because it helps executive determine arena in which their
firm competes.
b. Industry boundary is important because it helps executives determine key factors for
success.
c. Industry boundary is important because it gives executives another basis on which to
evaluate their firm’s goals.
d. All of the above statement is true.
19. It is one characteristic of Industry Structure which industry sales are dominated by only a few firms.
a. Concentration c. Product Differentiation
b. Economies of Scale d. Barriers to entry
20. Assuming competitors will continue to behave in same way. What kind of example that the sentence
is being described?
a. Common mistake in identifying competitors
b. Common assumption in identifying competitors
c. Common mistakes in doing competitive market analysis.
d. None of the above.
21. This is a study of the dynamism of the market. It is the attractiveness of a special market in a
specific industry.
a. Market Analysis c. Competitors Analysis
b. Financial Analysis d. Customers Analysis
22. What factor affects or influences the consumption behavior of the company President who will buy
expensive clothes, while a blue-collar worker will buy work clothes?
a. Age and life cycle c. Occupation
b. Lifestyle d. Personality and self- concept.
23. Buyer’s decisions are also influenced by personal outward characteristics such as the buyer’s age
and life cycle, occupational, economic circumstances, lifestyle, personality and self-concept. What
consumption behavioral factor manifest this?
a. Cultural Factors c. Personal Factors
b. Social Factors d. Psychological Factors
24. This tool of analysis is framework used to analyze industry’s competitive forces and to shape
organization’s strategy according to the results of the analysis.
a. SWOT Analysis c. Porter’s Five Theory
b. PEST Analysis d. None of these
25. A Filipino youth, is exposed to the values of hiya, pakisama, social acceptance and smooth inter-
personal relationship. What consumption behavior is being described?
a. Social Factor c. Personal Factor
b. Cultural Factor d. Psychological Factor
TEST II. IDENTIFICATION
Identify the following statement, write to the space before the number if the example is
(STRENGHT, WEAKNESS, OPPURTUNITY and THREAT) of the company or any business
establishment.
________ 16. Abundant financial resources
________ 17. Introduction of new substitute products
________ 18. Limited and sufficient financial capitalization
________ 19. Responsible and committed employees
________ 20. Under trained employees and poor management skills
________ 21. Entry of foreign competitors in the market
________ 22. Rival firms are complacent
________ 23. Out-of-date product in the market
________ 24. Well-known brand name due to promotions and advertisement
________ 25. Lower cost of raw material used for the production of goods.
________ 26. Very narrow product line which result low level of distribution
________ 27. Sales decline for a substitute product
________ 28. Better marketing and financial skills
________ 29. Increased government regulations
________ 30. Rapid market growth in the location where business is established.
TEST III. Write A if the statement describing Strategic Thinking and write B for
Strategic Planning.
________ 31. The future is predictable and specifiable in detail.
________ 32. Only Shape the future can be predicted.
________ 33. All managers understand the larger system.
________ 34. Asserts control through measurement systems, assuming that
organizations can measure and monitor important variables both accurately and quickly.
________ 35. The planning process is a critical, value adding element.
________ 36. The challenge of setting strategic direction is primarily analytic.
________ 37. Relies on self-reference.
________ 38. Lower-level managers have a voice in strategy making.
________ 39. The roles of formulation and implementation can be neatly divided.
________ 40. The creation of the plan is the ultimate objective
TEST IV: MODIFIED TRUE OR FALSE
Put your answer on the space provided before the number. Write capital letter T if the
statement is correct and F if the statement is false. Then, identify and write the word that
make statement false and supply the correct word on the space provided after the
statement to become the sentence is true. Each number is corresponding 3 points.
______41-43. The management learn to ask good questions to uncover better options
and plans.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______44-46. The shape of the future can be predicted through the help of strategic
planning.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______47-49. In creating a strategic direction or plan, you’ll analyze the effects of
competitors, supplier, customer and shareholders might have on your strategic plans.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______50-52. Strategic thinking requires ability and decisiveness in choosing a plan and
sticking with it.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______53-55. Brainstorming is a possible solution when you discover obstacle during
the planning process.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______56-58. Strategic thinking requires making predictions about the future and
forecasts must be updated.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______59-61. The challenge of setting strategic direction is primarily critical.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______ 62-64. The management must decide how to best structure enroll others
to achieve important objectives and to avoid putting resources at unnecessary
risk of loss.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______ 65-67. It is a balancing act between consistency and flexibility. You and
your team will must follow a standard decision-making process.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
______ 68-70. Formulation and implementation are interactive rather than inconsequent
and discrete.
Correct word: (_________________________________)
Word make statement false: (_________________________________)
“Success is no accident, it is hard work, perseverance, learning,
studying, sacrifice and most of all, love of what you are doing or learning to
do.”
- Pele, Brazilian Football Legend -
____________________________________________________________________________
Prepared By: MR. RACKY MAR M. PALACIO
Instructor
Checked By: MS. ANNELEE D. CONVOCAR
BSBA, Chairperson
Approved By: DR. RAYMOND P. REY
Director, PSU Coron
