the ability of the business to increase its size in the longer run
9 of 21
definition of effeciency
ability of a business to use its resources effectively in ensuring financial stability and profitability
10 of 21
definition of liquidity
a measure of how quickly an asset may be converted into cash and therefore available to pay short term debts as they fall due
11 of 21
defition of solvency
ability of a business to pay both long and short term debts as they fall due. It is a measure of a business' financial stability
12 of 21
definition of gearing
how much debt finance the business has acquired to fund operations compared to its equity finance
13 of 21
what are financial objectives
objectives are based on the goals of strategic plans and are either short or long term
14 of 21
features of short- term goals
- tactical (1-2yrs) or operational (day to day), - reviewed reguraly to check targets are met
15 of 21
features of long - term goals
- these are strategic plans, determined for a set period, very broad
16 of 21
the role of finance in the interdependence of business functions
a financial manager must allocate adequate funds to each department to operate successfully and to develop budgets and cost controls for each department
17 of 21
examples of business goals
- increase dividends to shareholders, - be environmentally friendly, to be a market leader
18 of 21
what are goals?
longer term outcomes of a business
19 of 21
how are goals turned into objectives
outcomes acheieved through greater detail and this is measured or evaluated
20 of 21
why are strategic plans important?
- a long term view of where the business if going, - the strategies to acheive the goals
21 of 21
Other cards in this set
Card 2
Front
What does strategic planning include (two)
Back
- a long term view of where the business is goin, - strategies to achieve the goals
Card 3
Front
definition of financial resources
Back
Card 4
Front
what could the mismanagement of financial resources lead to?
Comments
No comments have yet been made