financial objectives
- Created by: s0098754
- Created on: 05-05-21 14:17
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- financial objectives
- profit
- need to be making profit
- can be a % or a certain amount
- simple to understand and provides motivation
- revenue
- can be a % or certain amount
- helps achieve growth
- cash flow
- want a positive cash flow
- negative cash flow/ no cash= business fails
- investment levels
- aim to have a lower or a certain amount of capital expenditure
- capital expenditure = amount spent on buying non current assets
- non current assets= buying things like property and retaining them for at least a year
- capital structure
- how a business raises finance (selling share or borrowing)
- high gearing= over 50% capital raised from borrowing
- low gearing= over 50% capital raised from selling shares
- costs
- aim to minimise costs
- either to a certain amount or by a certain %
- aim to minimise costs
- profit
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