Business Studies Notes

Financial Planning and Management Summary ? Financial preparation links the goals a line of products wants to action in the approaching and the resources it will need to achieve these goals. It is also concerned with evaluating the fiscal resource of a business. Strategic monetary vigilance is around setting the goals throughout the business and deciding what resources will be needed to achieve these goals. The main objective of financial management is to properly account for the income and expenditure of a business in order to maximise the value of that business to its owners. To achieve this managers must balance the following objectives: Liquidity favorableness Efficiency Growth Return on capital The financial planning wheel either will be plowsh are of the business plan or will arise from the business plan. The financial planning cycle is a continuous cycle of activities that take place in the financial area as the business plan is implemented.

These activities include: Addressing the present financial plaza Determining the financial elements of the business plan Developing budgets Estimating coin flows preparing financial reports interpreting financial reports maintaining record systems planning financial controls Minimising financial risks and losses. ? Financial markets are important to business because much(prenominal) markets provide access to funds needed for growth and for support aspects of operations. There are two main financial markets: the gold market and the capital market. The major participants in financial markets are: banks, which are the largest merchant banks financial and insurance companies superannuation/ mutual funds companies government [the reserve bank of Australia] The Australian depot exchange [ASX] is where stocks and shares are brought and sold in Australia. It is: a prime market, where assets are first sold a... If you want to get a full essay, order it on our website: Orderessay

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