financial objectives

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  • Created by: s0098754
  • Created on: 05-05-21 14:17
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  • financial objectives
    • profit
      • need to be making profit
      • can be a % or a certain amount
      • simple to understand and provides motivation
    • revenue
      • can be a % or certain amount
      • helps achieve growth
    • cash flow
      • want a positive cash flow
      • negative cash flow/ no cash= business fails
    • investment levels
      • aim to have a lower or a certain amount of capital expenditure
      • capital expenditure = amount spent on buying non current assets
      • non current assets= buying things like property and retaining them for at least a year
    • capital structure
      • how a business raises finance (selling share or borrowing)
      • high gearing= over 50% capital raised from borrowing
      • low gearing= over 50% capital raised from selling shares
    • costs
      • aim to minimise costs
        • either to a certain amount or by a certain %

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