117 finance

Question 1

what is the role of the finance department

Answer 1

• controlling costs/ budgeting
  -managing cash flow (cash flow forecasting)
  -pay employees wages and suppliers
  -seek sources of finance

Question 2

importance of finance department to managers

Answer 2

the need to pay employees and suppliers wages , so need to ensure the finance department is working efficiently , so they have enough money to pay them and suppliers on time

Question 3

importance of finance department to public limited companies

Answer 3

their accounts have the be public by law , and transparent for shareholders to see . they need to sell enough shares to raise large amounts of capital

Question 4

importance of finance department to new business

Answer 4

important so they can see how profitable their business is , and know when their break even point is so they can start making a profit. it helps them survive in the long term if they manage costs

Question 5

importance of finance department to government

Answer 5

important to them as they don’t want any debt . they need to make sure they know his much tax to collect and they want to know how well business are doing because it provides jobs in the economy- fulfilling legal requirements. so if finance department is managed well gives more opportunities for expansion leading to more jobs