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Free F3 – Financial Strategy Practice Test Question

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Showing 4–6 of 15 questions

Question 4

Which THREE of the following would be most important if a hospital wishes to review the effectiveness of its services?

Select all that apply, then click Submit answer.

  • ○

    The proportion of surgical procedures that are deemed to be successful.
  • ○

    Average waiting times for treatment.
  • ○

    Patient satisfaction ratings.
  • ○

    Staff costs compared to previous years.

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    Revenue generated from car park charges.

Question 5

The Board of Directors of a listed company have decided that it needs to increase its equity capital to ensure it is in a more stable financial position.

The shareholder profile is a mix of institutional and individual small shareholders.

The board is considering either:

• A scrip dividend

• A zero dividend

Which THREE of the following would be considered disadvantages of a scrip dividend compared to a zero dividend?

Select all that apply, then click Submit answer.

  • ○

    A scrip dividend results in distributable reserves being moved to non-distributable reserves.
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    A scrip dividend will dilute the control of current shareholders.
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    A scrip dividend results in more shares in issue which will create an expectation for future dividends.
  • ○

    There will be company secretarial and additional administration involved with a scrip dividend.
  • ○

    A scrip issue may give shareholders the impression that they are receiving something of value.
Question 6

Two listed companies in the same industry are joining together through a merger.

What are the likely outcomes that will occur after the merger has happened?

Select ALL that apply.

Select all that apply, then click Submit answer.

  • ○

    Increase in customer base.
  • ○

    Competition authorities step in to stop a potential price monopoly.
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    Decrease in employee motivation due to internal changes.
  • ○

    Changes to supplier relationships owing to internal changes.
  • ○

    Cost savings from synergistic benefits and economies of scale.