5: Selecting financial strategies

Question 1

Financial Strategy:

Answer 1

The long-term financial plan of action to achieve the financial objectives of the business.

Question 2

Sources of finance:

Answer 2

The range of options available to firms to fund business operations including banks, venture capitalists and share capital.

Question 3

Profit centres:

Answer 3

A section of a business for which costs and revenues and therefor profit can be identified.

Question 4

Capital expenditure:

Answer 4

The purchase of assets that will remain in the business in the medium to long-term, account for in the balance sheet.