Role of Financial Management (HSC SSCE Business Studies): Flashcards

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Role of Financial Management
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KHL's three brands

Kathmandu, Rip Curl, Oboz

Publicly listed company

Shares traded on stock exchange; public investors own stakes

Equity (financial term)

Ownership capital from issuing new shares to investors

Equity KHL raised during COVID-19

$207 million

Liquidity definition

Ability to meet short-term financial obligations

Solvency definition

Ability to meet long-term financial obligations

Dividend definition

Portion of profit distributed to shareholders

Cash flow definition

Movement of money in and out of business

Five financial management objectives

Profitability, growth, efficiency, liquidity, solvency

Operating costs

Expenses required to run business day-to-day

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