Role
What role of finance ensures a business can pay its short-term debts?
Liquidity
List one type of government influence on financial management
ASIC (Australian Securities and Investment Commission) or Company taxation
What does financial monitoring involve?
Comparing actual results with planned results
Which two Australian animal appears on the national coat of arms?
Kangaroo and Emu
What is the strategic role of finance?
To make sure funds are available for business activities
Interest rates are part of which type of financial influence?
Economic Influences
Why must business match the terms with the source of finance?
To ensure repayments suit the length and purpose of the business need.
What colour is a $50 note?
Yellow/Gold
What is the difference between liquidity and profitability?
Liquidity is the ability to pay short-term debts, while profitability is the ability to make profit
What is the type of long-term loan from investors with a fixed interest and time period?
Debentures
What is an example of monitoring and controlling
Cash flow statement, income statement or balance sheet
"I'm Lovin' it"
List the two types of short-term goals
Operational (day to day) and Tactical (1 - 2 years)
List the three types of short-term borrowing
Overdraft, commercial bills and factoring
List three of the five planning and implementing strategies
Financial needs, budgets, record systems, financial risks, financial controls
What water freezes faster; hot or cold water?
Hot Water
List all objectives of financial management
Profit, Efficiency, Growth, Solvency, Liquidity
List six of the seven financial institutions
Banks, investment banks, finance companies, superannuation funds, life insurance companies, unit trusts and ASX
Why might a business choose debt finance over equity finance?
In debt finance a business retains ownerships, it is tax deductable and there are a variety of terms and rates where equity finance may be more expensive, involves shared decision making and investor pressure.
What is Ms Chrissimos dogs name and breed?
Sunny and Golden Retriever