3.5.1 Financial Objectives

What are financial objectives?

• Financial goals a business wants to achieve

• The number of employees in a business

• The location of a business

• The type of products a business sells

Who usually sets the financial objectives in a business?

• Financial managers

• Marketing managers

• Sales representatives

• Human resources

What can financial objectives improve within a business?

• Coordination between teams

• The quality of products

• The design of the office

• The number of customers

What are revenue objectives often set to increase?

• The value or volume of sales

• The number of employees

• The amount of office space

• The number of suppliers

What is the main goal of cost objectives?

• To minimize costs

• To increase employee salaries

• To expand office space

• To hire more staff

What might profit objectives target?

• A higher figure for profit or a percentage increase from the previous year

• The number of new products launched

• The number of new employees hired

• The amount of office space expanded

What does cash flow include?

• All the money flowing into and out of the business

• The number of employees in a business

• The type of products a business sells

• The location of a business

What can damage a business's cash flow if allowed?

• Payments made on credit

• Hiring more employees

• Expanding office space

• Launching new products

What is the formula for calculating return on investment (ROI)?

What does a higher ROI indicate?

• More efficient investment

• Less efficient investment

• More employees

• More office space