ROFM - understanding the strategic role

Question 1

what is financial management

Answer 1

the activities within a business to determine and provide for the financial needs of the business

Question 2

what does financial management involve

Answer 2

planning, organising, and controlling financial assets of business to achieve business goals.

Question 3

what is the strategic role of management

Answer 3

source and utilise financial resources within business in most efficient and effective way to achieve established financial objectives

Question 4

why is strategic management important

Answer 4

o	Sufficient capital for expansion 
o	able to pay debts when they fall due 
o.    reality match their budgets 
o	low risk mix of funding 
o	Higher levels of profitability 
o	Low exposure to global economic risks

Question 5

interdependance

Answer 5

Interdependence refers to the concept where two things rely on and impact each other

The other functions rely on it to provide them with money

The other functions can impact finance through the projects they run and the funds they require