Finance Content Chunk 1

Question 1

Define the strategic role of financial management

Answer 1

Planning and monitoring of a business’s financial resources to achieve its financial objectives

Question 2

PLEGS?

Answer 2

Profitability, Growth, Efficiency, Liquidity, Solvency

Question 3

Define liquidity

Answer 3

Extent to which a business can meet its financial commitments in the short-term

Question 4

Define Solvency

Answer 4

Extent to which the business can meet its financial commitments in the longer term

Question 5

Interdependence with Marketing

Answer 5

Finance depends on marketing to generate funds

Marketing depends on finance for funding to promote the product