Untitled Flashcards Set

Financial objectives are specific, measurable goals that a business sets to guide its __________.

financial performance.

Financial objectives help measure business performance and __________.

progress.

One type of financial objective is revenue objectives, which aim to increase the total __________ from sales.

income.

Cost minimization objectives focus on reducing __________ to improve profitability.

expenses.

Profit objectives aim to increase the difference between __________ and costs.

revenue.

Cash flow objectives ensure enough cash is available for daily __________.

operations.

Return on Investment (ROI) objectives aim to maximize the __________ on money invested in the business.

return.

Managing the balance of debt and equity in financing is known as __________ structure objectives.

capital.

Shareholder return objectives aim to maximize the financial __________ to shareholders.

benefits.

The formula for Gross Profit Margin is (Gross Profit ÷ Revenue) × __________.

100.

The Current Ratio assesses short-term financial __________.

health.

High interest rates make borrowing __________, affecting investment decisions.

expensive.

A strong currency can reduce __________ revenues, influencing financial objectives.

export.

Financial objectives should align with long-term __________, such as expansion.

aims.

Expanding quickly may reduce short-term __________ according to common conflicts between financial objectives.

profits.

Aggressive cost-cutting may reduce quality and __________ according to the revenue vs cost minimization conflict.

sales.

Exam tips suggest referencing real-life examples like Amazon for __________ minimization.

cost.