5.1 The Role of the Finance Function

Question 1

Define ‘Finance Function’

Answer 1

The finance department in a business.

Question 2

Define ‘Financial Information’

Answer 2

Details of profit, loss, cash flow, break-even, profit margin and average rate of return. These can be used in helping business decision-making.

Question 3

Why is the finance function important?

Answer 3

All businesses must manage their finances well to succeed. Accurate financial information is vital to a business when planing and developing.

Question 4

What is the purpose of the finance function?

Answer 4

To provide financial information.

To support business planning and decision-making.

Question 5

How does the finance function influence business activity?

Answer 5

Provides information to other departments needed in order to make decisions.
Raises finance needed within a business.