Strategic Role of Financial Management Flashcards
What is the first sub-heading of the financial syllabus?
Strategic Role of Financial Management
What are the long term objectives and goals of a business called?
Strategic or strategic role
What are the 5 financial objectives of a business?
Profitability, Growth, Efficiency, Liquidity and Solvency (PLEGS)
The ability of a business to make financial gains is called…
Profitability
The extent to which a business can convert its current assets into cash is called…
Liquidity
The ability a business has to use its resources effectively to minimise expenses is called…
Efficiency
The size of a business compared to competitors is called…
Growth
A business’s ability to meet long-term objectives is called…
Solvency
What are the day-to-day plans of a business called?
Short-term objectives
What is an examples of ONLY short-term objectives?
Liquidity
What are plans that will generally take over 5 years to achieve?
Long-term objectives
What are examples of ONLY long-term objectives?
Solvency and growth
What is it called when all the key business functions rely on one another to operate?
Interdepedance
What are examples of both long-term and short-term objectives?
Efficiency and profitability
