The Roles Of The Finance Function in Organisation Flashcards Preview

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Flashcards in The Roles Of The Finance Function in Organisation Deck (20)
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1
Q

Types of Organizations

A

Profit Seeking

NFPO

2
Q

Roles of the Finance Function

A

Enables an organization to create and preserve value through planning,forecasting and resource allocation.

Shapes how and organization creates and preserves value through performance management and control.

Narrates how and organization creates and preserves value through corporate financial reporting.

3
Q

Define Ethics

A

Ethics is the system of morale principles that exams the concepts of right or wrong

4
Q

Identify NFPO

A

Schools

Hospitals

5
Q

Primary Objective of an NFPO

A

Maximize benefit to beneficiaries

6
Q

Functions of an Organization

A
Operations
Finance
Sales and Marketing
HR
IT
7
Q

Define Business Ethics

A

Is the application of ethical values to business behavior

8
Q

What’s an ethical dilemma

A

Where a decision maker has to decide what is ‘right’ or ‘wrong’ thing to do

9
Q

Examples of ethical dilemmas ….accounting issues

A

Creative Accounting to boost or suppress reported profits
Directors pay arrangements
Insider trading
Should bribes be facilitated

10
Q

CIMA Code of Ethics (5 principles)

A
Integrity
Objectivity
Professional competence and due care
Confidentiality 
Professional behavior
11
Q

Define a stakeholder

A

Is a group or individual who has interest in what the organization does or an expectation of the organization

12
Q

Three categories of stakeholders

A

Internal
External
Connected

13
Q

Mendelow’s Matrix

A

Draw graph

14
Q

Corporate Social Responsibility

A

A company should be sensitive to the needs and wants of all the stakeholders in its business operations not just shareholders

15
Q

What is the UK scandal that led to corporate governance

A

BCCI

pollypeck

16
Q

What is the US Scandal that led to corporate governance

A

Tredway Report

17
Q

What is the primary reason for corporate governance

A

To protect stakeholders (shareholders,employees and pensioners) it is intended to remind directors of the limitations of their power

18
Q

What decades were the corporate scandals in the UK

A

1980 1990

19
Q

Illustrate the agency problem

A

Directors voting for pay increases and huge bonuses for achievement of modest targets.

20
Q

Define Corporate Governance

A

The set of processes and policies by which a company is directed administered and controller. It included the appropriate roles of the board of directors and auditors of the company