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Multiple Choice
Which of the following topics is NOT of particular interest to a financial manager?
A
Capital budgeting decisions
B
Management of working capital
C
Preparation of tax returns
D
Analysis of financial statements
Verified step by step guidance
1
Understand the role of a financial manager: A financial manager is primarily concerned with making decisions that maximize the value of the firm. This includes areas such as capital budgeting, working capital management, and financial statement analysis.
Review the concept of capital budgeting: Capital budgeting involves evaluating long-term investment opportunities and deciding which projects the company should undertake to achieve its financial goals.
Examine the management of working capital: Working capital management focuses on ensuring the company has sufficient liquidity to meet its short-term obligations and operate efficiently.
Analyze the importance of financial statement analysis: Financial statement analysis helps the financial manager assess the company's performance, financial health, and areas for improvement.
Identify the topic that is not relevant: Preparation of tax returns is typically handled by accountants or tax professionals and is not a primary focus of a financial manager, as it does not directly relate to decision-making for maximizing firm value.