3.1 Role of Financial Management Flashcards

1
Q

What is the role of Financial management?

A

Financial management refers to the planning, organising and controlling of the financial resources.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

what does the ability to manage financial resources contribute to?

A

The ability to financially manage contributes to the profit, return on investment, growth and expansion of the business. Effective financial planning is a critical success factor for a business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is the strategic role of financial management?

A

The strategic role of financial management is to provide the financial resources to allow the implementation of the business strategic plan.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does the strategic plan outline?

A

The strategic plan outlines the goals, objectives and future direction of a business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What does financial management involve?

A

Financial management involves determining the financial resources available to implement the strategies necessary to achieve the goals and objectives of a business.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What activities are involved in the strategic management of financial resources?

A
  • Setting policies and procedures regarding cash and credit controls
  • Determining the mix of equity and debt finance raising
  • Budgeting, including monitoring actual and planned performance
  • Record keeping and analysis through the use of financial statements and ratios
  • Implementing financial controls
  • Taxation management
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q
A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly