A-level Business Studies Lesson 28 (3.5.1 L1)

Question 1

Financial objectives

Answer 1

The specific, focused aims or goals of the finance and accounting function or department within an organisation.

Question 2

Investment

Answer 2

In the context of a business, investment describes items that are purchased by firms because they help them to produce goods and services. These items are often described as capital goods and include items such as machinery, delivery vehicles, factories and offices.

Question 3

Return on investment

Answer 3

A measure of the efficiency of an investment in financial terms, used to compare the financial returns of alternative investments.

Question 4

Debts

Answer 4

Money owed by an individual or organisation to another individual or organisation. For example, money borrowed from a business from a bank is a debt, which will need to be paid back to the bank, usually by an agreed date.

Question 5

Long-term funding

Answer 5

Money provided to a business which does not require repayment within a year.