Finance Basics
What is the definition of finance?
The management of money. how it’s made, used, and invested.
How does finance support strategic planning?
By providing data to set goals and decide how to reach them.
What are the three key financial questions a company asks?
How are we doing, what should we do, and how do we get there?
How does McDonald’s use finance to expand globally?
By analyzing financial data before opening new restaurants.
What are the two main areas finance focuses on?
Managing money and making smart financial decisions.
Why is finance important when evaluating investments?
It helps compare costs and returns to choose the best option.
What is capital budgeting?
Deciding which long-term investments or projects are worth funding.
What type of investment does McDonald’s make when opening a new location
A long-term investment.
What is the main goal of finance in any business?
To use money wisely to grow and stay successful.
How does finance help manage risk?
By tracking cash flow and preparing for market changes or losses.
What is capital structure?
How a company finances itself using debt and equity.
How does McDonald’s use financial management to stay successful?
By managing costs, forecasting sales, and making smart investment choices.