3.5 decision making to improve financial performance

Question 1

what are the main 6 categories of financial objectives

Answer 1

revenue objectives
cost objectives
profit objectives
cash flow objectives
investment objectives
capital structure objectives

Question 2

what is revenue

Answer 2

the amount (value) of a product that customers can actually buy from a business

Question 3

what is demand

Answer 3

the amount of a product that customers are prepared to buy

Question 4

what can demand be measured in terms of

Answer 4

volume (quantity bought) or value (value of sales)

Question 5

what factors affect the level of demand

Answer 5

prices and incomes
tastes and fashions
competitor actions
social and demographic change
seasonal changes
changing technology
government decisions