SETTING FINANCIAL OBJ

Question 1

WHAT ARE FINANCIAL OBJ

Answer 1

Specific goal set in relation to the managmen tof an org monetary resources

that will enable the company to achieve its overarching corp obj

Question 2

if my corp obj is to expand overseas and my op obj is to open a new factory in india what would my finance obj be

Answer 2

indian factory break even in first year of operating

Question 3

state the 4 values of setting financial obj

Answer 3

set clear budgests allow descisions to be made

creates clarity and purpose

allowss sucess ot be measured and reviewsd

enable bs to secure external finance e.g bank loans

Question 4

explain how setting bufgets allw descision to be mad e

Answer 4

managers in each dpt know constraints theyre dealing with and helps em make d that beenfits bs and through using resources effectivley

Question 5

explain how creates clarity and purpose

Answer 5

everyone knows what they wanna achieve and this can increase motivation = hihger productivity = better quality of servies

Question 6

why is measuring success and reviewing beneficial

Answer 6

helps managers understand where they are if htis is going right and strategies to fix if not

reward employees to jeep motivated and on track

Question 7

financial obj enable a bs to secure external finance such as bank loans

Answer 7

show bank maagers we’ve got obj of paying back loan w/in 3 years - bank see bs well managed so lend money

Question 8

what is capital structure

Answer 8

mix of bs finance provided from
equity e.g retained profit/shares
and debt e.g loans

Question 9

what are retained profits

Answer 9

profits kept in business rather than being paid out to shareholders

a key internal source fo finance