NEW
Font size
WorksheetsRole of Financial Management Yr 12 Business Studies
Total questions: 10
Worksheet time: 5mins
Financial management refers to:
planning, organising and monitoring of financial resources
planning, monitoring and controlling financial resources
planning, organising and controlling financial resources
organising, monitoring and controlling financial resources
The strategic role of financial management is to:
provide financial resources to implement strategic plan
provide guidelines to implement the strategic plan
outline the financial plans of the business
provide a system of recording financial statements
Which of the following is NOT and objective of financial management?
Liquidity
Solvency
Growth
Expenses
Profitability refers to:
how much money is made on selling your products
the ability to make a financial return from business activities
the main driving purpose for running a business
the return on capital and growth in sales
Growth in a business can be generated by:
an increase of competitors in the market
advances in technology and access to resources
an increase in size and value of a business
opportunities to expand globally
Efficiency is generated by:
maximising returns for minimal costs
increasing the number of inputs and outputs
lowering costs of production
increasing competitiveness in the market
Liquidity refers to:
how much money a business has available in the bank
the level of current liabilities compared to current assets
the ease with which an asset can be converted into cash
the amount of short-term assets a business has
Solvency refers to:
the level of cash-flow in a business
the extent to which the current assets of a business exceed current liabilities
the extent to which current liabilities of a business exceed current assets
short-term financial goals of a business
Short-term financial objectives are:
concerned with growing the business
concerned with increasing profitability
concerned with increasing efficiency
concerned with managing cash flow and meeting current debts
Long-term financial objectives are:
concerned with meeting current debts of the business
concerned with growing the business
concerned with increasing capital investment
concerned with meeting shareholder expectations
