5 - Financial Objectives Flashcards
1
Q
What Are Financial Objectives?
A
Are the monetary targets a business wants to achieve within a set period of time.
2
Q
What Are The 6 Financial Objectives?
A
~ Return on investment (ROI).
~ Capital structure (Gearing / Long term funding that is debt).
~ Revenue.
~ Costs.
~ Profit.
~ Cash flow.
3
Q
What Is ROI?
A
Is a measure of a firms profitability and performance.
4
Q
What Is The Formula For ROI?
A
Operating Profit / Capital Invested x 100
