Financial Objectives & Constraints

Objectives outline what a business wishes to achieve, in financial terms, within a time period.

Constraints are internal and external factors affecting the firm's ability to achieve objectives.

Constraints

Internal Constraints

• Financial objectives- can be constrained by a lack of cash flow, especially at a time of rising demand
• Personnel- do staff have the skills required to achieve goals?
• Business type- new businesses may have difficulty assessing the market
• Operations- a firm with a higher capacity…