Strategic Role of Financial Management (HSC SSCE Business Studies): Flashcards
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Definition: Strategy
Definition: Strategy
Long-term, broad objectives affecting all business areas
Strategic role of financial management
Strategic role of financial management
Planning/managing financial resources for long-term goals
Primary purpose of strategic financial mgmt
Primary purpose of strategic financial mgmt
Ensure business achieves its goals & objectives
% small businesses fail due to poor financial mgmt (ASIC)
% small businesses fail due to poor financial mgmt (ASIC)
44%
Definition: Financial resources
Definition: Financial resources
Resources in business with monetary/money value
How many key activities in strategic financial mgmt?
How many key activities in strategic financial mgmt?
Six
Key activity for meeting daily expenses
Key activity for meeting daily expenses
Maintaining sufficient cash flow
Two reasons businesses need financial plans
Two reasons businesses need financial plans
Securing finance & predicting performance
3 components of effective financial plan
3 components of effective financial plan
Sales forecast, expenses budget, cash flow projection
Why ongoing review of financial plans matters
Why ongoing review of financial plans matters
Keeps plan relevant as business conditions change