SAMPLE WORK

Complete copy of CPA Financial Management Revision Kit (Past papers with answers) is available in SOFT copy (Reading using our MASOMO MSINGI PUBLISHERS APPS)  And in Hard copy (Printed and Bound)

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Email: [email protected]

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TOPIC 1

 OVERVIEW OF FINANCIAL MANAGEMENT

QUESTION 1

April 2026 Question One A

Corporate governance is an important mechanism for ensuring accountability and transparency in organisations.

 Required:

Discuss FOUR principles of good corporate governance.             (4 marks)

QUESTION 2

December 2025 Question One A

The relationship between shareholders and management is one of the agency relationships widely studied in finance because the actions of managers more often than not conflict with those of shareholders.

 Required:

With reference to the above statement, evaluate FOUR causes of these conflict. (4 marks)

 

QUESTION 3

August 2025 Question One A

1. Explain FOUR functions of a finance manager in an organisation. (4 marks)
2. Highlight FOUR mechanisms that might be used to ensure that managers act in the best interest of the shareholders. (4 marks)

QUESTION 4

April 2025 Question One A

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

QUESTION 5

December 2024 Question Four A

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

QUESTION 6

August 2024 Question One B

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 7

April 2024 Question One A

In relation to agency theory:

1. Highlight THREE types of conflicts between shareholders and government. (3 marks)
2. Propose THREE solutions to the conflicts identified in (a) (i) above.    (3 marks)

QUESTION 8

December 2023 Question One A

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

QUESTION 9

August 2023 Question One A

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

 QUESTION 10

April 2023 Question One A

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:

• Identify this type of conflict in modern day financial management of a firm.(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 11

December 2022 Question One A

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 12

August 2022 Question Two B (i)

Distinguish between the following terms as used in finance:

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

 QUESTION 13

August 2022 Question Three B

Discuss three causes of conflict between shareholders and managers in relation to agency theory.      (6 marks)

QUESTION 14

April 2022 Question One A

Describe four ways of encouraging managers to achieve stakeholders’ objectives. (4 marks)

QUESTION 15

December 2021 Question One A

Describe four possible sources of conflict of interest between shareholders and bondholders.     (4 marks)

QUESTION 16

September 2021 Question One B

Highlight four advantages of the wealth maximisation objective of a firm.     (4 marks)

QUESTION 17

November 2019 Question One A

In the context of agency theory:

(i) Explain the “principal-agent” problem.     (2 marks)

(ii) Explore two ways of addressing the principal-agent problem.     (4 marks

SAMPLE WORK

Complete copy of CPA Financial Management Revision Kit is available in SOFT copy (Reading using our MASOMO MSINGI PUBLISHERS APPS)  And in Hard copy (Printed and Bound)

Phone: 0728 776 317

Email: [email protected]