Financial Goals

Question 1

What are the 4 Financial Goals a company have?

Answer 1

1. Making Money
2. Increase Profit
3. Decrease Cost
4. Increasing Savings

Question 2

What is the formula for Profit?

Answer 2

Profit = Income - Cost

Question 3

What is the formula for income?

Answer 3

Income = Q(Quality of Sales) x P(Prices)

Question 4

What are the 4 ways to increase quality?

Answer 4

1. Increase Advertising
2. Add more value to costumers
3. Add new products to the market
4. Increase Product Life

Question 5

What is the formula for variable cost per unit?

Answer 5

Variable cost per unit = Total cost (Baht)/ Quality (pcs)

Question 6

What is the formula for price per share?

Answer 6

Price per share = EBIT / Share or
= Marginal Benefit/ Share

Question 7

What does EBIT mean?

Answer 7

Earning Before Interest and Tax

Question 8

What does ROI mean?

Answer 8

Return on Investment

Question 9

What is the formula for ROI?

Answer 9

ROV = P.V of Marginal Profit / Investment

Question 10

What are the 2 types of businesses?

Answer 10

1. International Business
2. Local Business

Question 11

What is the FINAL financial goal a company should have?

Answer 11

Making Profit

Question 12

What is a cost that do not vary with the quality of production?

Answer 12

Cost

Question 13

What does finance mainly focuses on?

Answer 13

Money

Question 14

What are the types of investment?

Answer 14

1. Direct Investment
2. Indirect Investment

Question 15

This is a type of investment where investors can directly manage where their investments go

Answer 15

Direct Investment

Question 16

This is a type of investment where investors cannot manage where their investments go and usually they invest and the company would be the one to handle where it would go

Answer 16

Indirect Investment

Question 17

It is starting the investment right from the beginning

Answer 17

Green Field

Question 18

It is investing in government where the government will give back the investment with interest.

Answer 18

Government Bond

Question 19

This is a business that the owner or investors make a blueprint or trial product with high capital

Answer 19

Start up Company / Business

Question 20

This is a business where you can invest many times and when sales are going down you have to invest again.

Answer 20

Ordinary Investment Business / Company

Question 21

What is the leverage proportion?

Answer 21

Loan / Capital = 2/1 > Acceptable

Question 22

What is the 3 ways of financial planning?

Answer 22

1. Finding Money
2. Using Money
3. Re-investing or new investments

Question 23

What does SME mean?

Answer 23

Small and Medium Enterprise Company

Question 24

Based on the employees of a company, you can know its size. What size would be CE < 50 Persons?

Answer 24

S Size

Question 25

Based on the employees of a company, you can know its size. What size would be 50 < 200 Persons

Answer 25

M Size

Question 26

Based on the employees of a company, you can know its size. What size would be EM > 200 Persons

Answer 26

L Size

Question 27

Based on the employees of a company, you can know its size. What size would be CE < 20 persons?

Answer 27

Microsized

Question 28

What are the 3 Financial Goal terms?

Answer 28

1. Short term 2. Medium Terms 3. Long Term

Question 29

What is the formular for margin?

Answer 29

Margin = Income - Margin Cost