Sources of Finance Flashcards
Non-for profit (NFP) orgs use … as key drivers
The 3 E’s:
Effectiveness
Economy
Efficiency
Critical success factors (CFSs)
features that are particularly valued by customers and therefore where the org must excel
~ measured by KPI
Sustainability reporting guidelines were issued by…
Global Reporting Initiative (GRI)
GRI core performance indicator: Economic
~ economic value generated
~ entry lvl wages by gender
~ dev of sig infrastructure
GRI core performance indicator: Environmental
~ renewable vs non-renewable materials used
~ fuel consumptions (and type)
~ impacts on the environment, reversible?
GRI core performance indicator: Social
~ hiring ratios
~ hours of training provided
~ no. of discrimination incidents
Debt holders face…
Equity holders face…
D: lower risk and lower returns
E: higher risk but higher return
Financial intermediation
banks take deposits from customers and use those funds to lend money to other customers
General clearing
items of any size but takes 3-4 days to be cleared
Electronic funds transfer (EFT)
computer-based system, mainly used for debit/credit cards
Banks automated clearing system (BACS)
EFT system that deals with salaries, standing orders and direct debits
Clearing House Automated Payment System (CHAPS)
covers items >10,000, same day clearing
Society for Worldwide Interbank Financial Telecommunication (SWIFT)
worldwide financial messaging network
similar to CHAPS but international
Primary banks
~ operate money transmission service
~ cheque and cheque clearing
e.g. commercial, retail and clearing banks
Secondary banks
range of merchant banks, do not take part in clearing
