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

Profitability, growth, efficiency, liquidity, solvency

1-2 years (tactical & operational plans)

More than 5 years (strategic plans)

Maximize excess of revenue over expenses

Business's ability to increase its size over longer term

Minimise costs & manage assets for max profit with low assets

Ability to meet financial commitments in short term (<12 mths)

Ability to meet financial commitments in short & long term

Proportion of debt (external) to equity (internal) finance

Inventory levels, cash holdings, collection of receivables