3.5 3 Financial objectives

Question 1

What are the seven types of financial objectives

Answer 1

Revenue objectives
Cost objectives
Project objectives
Cash flow objectives 
Investment objectives
return on investment objectives
Capital structure objectives

Question 2

Revenue objectives

Answer 2

goals relating to the level of income of sales

Question 3

Cost objectives

Answer 3

goals relating to the expenditure for production

Question 4

Profit objectives

Answer 4

goals relating to the amount of profit to be achieved

Question 5

Cash flow objectives

Answer 5

goals relating to the ability of an organisation to fund its day to day operations (sufficient inflow to cover outflow

Question 6

Investment objectives

Answer 6

goals relating to the amount invested in corporate development strategies (i.e the purchase of new equipment)

Question 7

Return on investment objectives

Answer 7

goals relating to the levels of profit achieved by each investment

Question 8

capital structure objectives

Answer 8

goals relating to the extent the business is financed internally, or by debt