Finance

Role of Financial managaement

100

Financial resources

Are those resources in a business that have a monetary or money value.

200

Financial business objective

"Make a profit of 10%" is an example of what?

300

Encompasses the strategies that a business will use to achieve its goals?

What is a strategic plan?

400

-insufficient cash to pay suppliers -inadequate capital for expansion -too many assets that are non-productive -delays in accounts being paid -possible business failure -overstocking of materials.

What are 3 problems that a business may face due to the lack of financial management?

500

-monitoring an business’s cash flows -paying its debts -developing financial control techniques -auditing of financial accounts -continuing to make profits for its owners and shareholders.

What are 3 of the strategies of financial monitoring?

Influences on financial management

100

- Owner's equity -Retained profits

Give an example of a financial internal source:

200

-Banks -Financial institutions -Government -Suppliers -Financial intermediaries

What kinds of institutions provide an external source of finance?

300

- is the selling of accounts receivable for a discounted price to a finance or factoring company. - Harvey Norman sells its consumer's debt so that they can regain the money quickly which allows them to buy more stock.

Describe what factoring is? Give an example of this.