11.2 planning and implementing

Question 1

Capital Expenditure

Answer 1

• What is spent on a business’s non-current assets or fixed assets

Question 2

Planning process

Answer 2

• Determining strategies to achieve set goals

Question 3

Financial Needs is determined by

Answer 3

• The size of the business
• The current phase of the business cycle
• Future plans for growth and development

Question 4

Budgets

Answer 4

• Provide information in quantitative terms about requirements to achieve a goal
• Cash required for planned outlays
• Cost of capital expenditure
• Operational Budgets
• Project Budgets
• Financial Budgets

Question 5

Budgets: OPERATIONAL

Answer 5

• Main activities of a business
• Sales production
• Expense
• Raw materials
• Labour hours

Question 6

Budgets: PROJECT

Answer 6

• Capital Expenditure
• Research and development

Question 7

Budgets: FINANCIAL

Answer 7

• Income statement
• Balance sheet
• Cash flow statement

Question 8

Record Systems

Answer 8

• Mechanisms employed by a business to ensure that data recorded are accurate, reliable, and accessible
• Management bases it decisions on the information when needed

Question 9

Financial Risk

Answer 9

• Risk to a business of being unable to cover its financial obligations

Question 10

Financial Control

Answer 10

• Policies and procedures that ensure the plans of a business will be achieved in the most efficient way
• Separation of duties - for example, one person writes the cheques and other signs the cheques
• Rotation of duties - for example. Staff are skilled in a number of areas and can rotate duties
• Clear authorisation and responsibility for tasks in the business