Finance For Decision Making Revision Kit hard copy (CS past papers with answers)

Finance For Decision Making Revision Kit – Click to download sample

TOPIC 1

 OVERVIEW OF FINANCE

 QUESTION 1

April 2025 Question One A and B

  • Examine FOUR non-financial objectives of a firm.                (4 marks)
  • Evaluate THREE principles of stakeholder’s theory in relation to finance.  (6 marks)

QUESTION 2

April 2025 Question One A (Adopted from FM)

Examine THREE overlaps and THREE conflicts that could arise as firms strive to achieve various financial and non-financial objectives.                                           (6 marks)

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QUESTION 3

December 2024 Question Three B

Propose FOUR ways of solving conflict between shareholders and auditors in relation to agency theory of a firm.                                                                                          (4 marks)

 

QUESTION 4

December 2024 Question Four A (Adopted from FM)

Highlight FOUR limitations of profit maximisation goal of a firm.                           (4 marks)

 

QUESTION 5

December 2024 Question Five B

Discuss THREE mechanisms that could be used to ensure that managers act in the best interest of shareholders.                                                                                          (6 marks)

 

QUESTION 6

August 2024 Question One A and B

  • Summarise FOUR unethical financial practices in organisations.       (4 marks)
  • Explain THREE ways through which goals of a firm may conflict with one another.                                                                                                (6 marks)

 

QUESTION 7

August 2024 Question One B (Adopted from FM)

The principles that govern all ethical behaviour for finance managers in practice and in business helps them to navigate the complexity of their work.

 

Required:

In reference to the above statement, explain THREE fundamental principles of ethical behaviour.                                                                                                               (6 marks)

 

QUESTION 8

April 2024 Question Two A

Explain FOUR ways of resolving conflict between the government and shareholders.

(4 marks)

QUESTION 9

April 2024 Question One A (Adopted from FM)

In relation to agency theory:

  • Highlight THREE types of conflicts between shareholders and government.

(3 marks)

  • Propose THREE solutions to the conflicts identified in (a) (i) above.       (3 marks)

 

QUESTION 10

April 2024 Question Five A

Summarise FOUR functions of a finance manager.                                             (4 marks)

 

QUESTION 11

December 2023 Question One B

Discuss FOUR limitations of the profit maximisation goals of a firm.         (4 marks)

 

QUESTION 12

December 2023 Question One A (Adopted from FM)

Explain FOUR corporate objectives that may conflict with the financial objective of a firm.                                                                                                                              (8 marks)

 

QUESTION 13

December 2023 Question Three B

Describe THREE principles that govern the stakeholder’s theory.                           (6 marks)

 

QUESTION 14

August 2023 Question One A (Adopted from FM)

Outline FOUR limitations of profit maximisation as a financial goal of a firm.   (4 marks)

 

QUESTION 15

April 2023 Question One A (Adopted from FM)

Management of a limited liability company is appointed to promote and protect shareholders’ interest in the performance of their functions. The aim is to maximise shareholders’ value. The management, however, could have interest that might be in conflict with shareholders’ interest.

 

Required:

In reference to the above statement:

(1 mark)

  • Explain THREE factors that could contribute to the conflict identified in (a) (i) above.                                                                                                           (3 marks)
  • As a financial management professional, explain FOUR strategies that could be used to manage or mitigate this conflict to protect shareholders.                  (4 marks)

 

QUESTION 16

April 2023 Question Three A

Describe the following categories of agency conflicts:

  • Managers versus shareholders.                                                               (2 marks)
  • Creditors versus shareholders.                                                               (2 marks)
  • Shareholders versus employees.                                                               (2 marks)

 

QUESTION 17

December 2022 Question Two A and B

  • Examine THREE ethical issues facing financial managers.                  (6 marks)
  • Highlight FOUR arguments in favour of wealth maximisation objective.(4 marks)

 

QUESTION 18

December 2022 Question One A (Adopted from FM)

Ethical responsibilities arise not as a result of legal requirements but as a result of moral imperative for companies to operate in an ethical and fair manner.

In light of the above statement, summarise SIX elements of business ethics in management of companies.                                                                                    (6 marks)

 

QUESTION 19

August 2022 Question One A

Highlight five limitations of profit maximisation objective of a firm.                    (5 marks)

 

QUESTION 20

August 2022 Question Two B (i) (Adopted from FM)

Distinguish between the following terms as used in finance:

“Agency cost” and “agency problem”.                                                                  (2 marks)

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