Role of Finance Flashcards
(4 cards)
1
Q
Whats the strategic role of finance?
A
The strategic role of financial management refers to the specific planning and management of a business’s financial resources in order to assist the business achieve
its objectives.
2
Q
What are the main objectives of financial management?
A
liquidity, solvency, profitability, growth, efficiency
3
Q
What is solvency in terms of objectives?
A
solvency: whether the business can meet its long-term financial commitments and the long term stability of the business.
4
Q
What is liquidity in terms of objectives?
A
extent to which businesses can meet its short term financial commitments
