2.1.1
2.1.2
2.1.3
100
Refers to how businesses raise, use and monitor funds.
What is Financial Management
100
A business’s ability to pay its short-term obligations as they fall due
What is Liquidity
100
The continual process that all businesses must go through to manage their finances efficiently and achieve their financial goals
What is The financial planning cycle
200
Allow a business to maximize profits, increase the wealth of its owners and expand the business
What is Effective financial management?
200
The return to the business that results from its activities
What is Profitability
200
Gathering information on issues such as the state of the business’s liquidity or solvency position, profits generated, level of debt used to finance the business, and the dividends going to the owners
What is Addressing Present Financial Position
300
Balance Sheet, the Revenue Statement and the Statement of Cash Flows
What is General Purpose Financial Reports (GPFRs)
300
The ability of a business to maximize its output from its level of inputs
What is Efficiency?
300
Preliminary financial plans for the future, and are necessary for the business to function efficiently and effectively
What is Budgets
400
financial statements, created by the business, to be used by internal stakeholders such as management.
What is Specific Purpose Financial Reports (SPFRs)
400
can be in the form of increases in earnings, market-share or a number and diversity of products
What is Growth
400
Tools that enable managers to compare the actual financial performance of their business with the planned performance. They include budgets, financial statements and financial ratios
What is Planning Financial Controls
500
budgets, break-even analyses and sales reports
What is examples of Specific Purpose Financial Reports (SPFRs)
500
The income generated by the business, relative to the capital invested in it
What is Return on capital
500
HEDGING and the purchase of DERIVATIVES are two such examples
What is Minimising Financial Risks and Losses
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