Role
Profitability, Growth, Efficiency, Liquidity and Solvency.
What are the objectives of financial management?
The funds contributed by owners to establish or build the business.
What is owner's equity?
The mechanisms employed by a business to ensure that data is recorded and the information provided is accurate, reliable, efficient and accessible.
What are record systems?
Cash, receivables and inventories.
What are Control of Current Assets?
To monitor levels of inventory, cash and the collection of recievables so businesses are able to pay their debts when they fall due.
What is efficiency?
Loans from investors for a set period of time that are not secured against a business' assets?
What are unescured notes?
The policies and procedures that ensure that the plans of a business will be achieved in the most efficient way.
What are financial controls?
Sections or departments of a business which costs can be directly associated.
What are cost centres?
The proportion of debt and the proportion of equity that is used to finance the activities of a business.
The allotment of shares made directly from the company to investors offering a disount to persuade investors to invest.
What are placements?
Cash inflows and outflows relating to the purchase and sale of non-current assets and investments
What are investing activities?
Casualisation of the workforce, downsizing or relocating operations, outsourcing, bundle pricing.
What is expense minimisation?
Goals are reviewed reguarly to see if targets are being met and resources are being used efficiently.
What are short-term goals?
Refers specifically to the project changes to the levels of economic growth throughout the world.
What is the global economic outlook?
The monitoring of financial situations to determine if financial objectives have been met.
What is comparative ratio analysis?
A document drawn up by the exporter demanding a payment from the importer at a specified time period.
What is a bill of exchange?
The reliance of funds to pay wages and salaries to their employees.
What is the interdependence between finance and HR?
The taking of funds from a large number of small investors and pooling them together to invest in specific types of financial assets.
What are unit trusts?
An accounting method where assets are listed on a balance sheet at the value at which they were purchased.
What are valuing assets?
Financial instruments that may be used to lessen the exporting risks associated with currency fluctuations.
What are derivatives?