Role of Financial Management

Question 1

Strategic role of financial management:

Answer 1

Working interdependently to achieve the objectives of the business

Question 2

Objectives of financial management: Profitability

Answer 2

Ensuring revenues are greater than costs

Question 3

Objectives of financial management: Growth

Answer 3

Increasing the business size (measured by increased revenue)

Question 4

Objectives of financial management: Efficiency

Answer 4

Managing assets and costs effectively to maximise profits

Question 5

Objectives of financial management: Liquidity

Answer 5

The ability to meet short term financial commitments

Question 6

Objectives of financial management: Solvency

Answer 6

The ability to meet long term financial commitments

Question 7

Short term objectives

Answer 7

Liquidity + efficiency

Question 8

Long term objectives

Answer 8

Profitability, solvency and growth

Question 9

Interdependence with other key business functions

Answer 9

The impact of financial decisions on other business functions