AQA A level business 3.5 Latest Update 2023

Financial objectives - ANS-:The specific goals set in relation to the management of an organisation's monetary resources that will enable a company to achieve its corporate objectives Value of Financial Objectives X2 - ANS-Set clear targets = allow for decisions to be made about resource allocation Secure external finance e.g. bank loan or investment Return on Investment - ANS-An investment is expenditure by an organisation on resources that will enable the business to achieve its objectives Investment appraisal - ANS-Process that managers use to compare the costs of an investment to the expected revenues it will accrue Gearing - ANS-Measure of risk as more debt that has been used to fund the business =More vulnerable to changes in interest rate Cash flow - ANS-The movement of money into and out of a business over a period of time Profit - ANS-The excess amount of money made by a company when its total revenue exceeds its total costs Loss - ANS-The difference between total costs and revenues when costs outweigh revenue Gross profit - ANS-The difference between sales revenue and cost of goods sold Operating profit - ANS-The difference between sales revenues , cost of goods and other operating costs (fixed) Profit for the year - ANS-The amount of profit left over at the end of the year by subtracting non current liabilities (e.g. tax) from operating profit Revenue objectives - ANS-Goals relating to the level of income (amount to be received) from sales Cost objectives - ANS-goals relating to the expenditure (amount to be spent) for production Profit objectives - ANS-goals relating to the amount of profit to be achieved Continues...