Financial Objectives

Question 1

Financial objectives

Answer 1

1. Cash flow targets
2. Cost minimisation
3. Return on capital employed
4. Shareholders return -
   £5/ 25p 0.25/5.00 x 100 (share price) = 5% dividends yield

Question 2

The internal influences

Answer 2

1. Characteristics of the firm
2. Owners
3. Sector
4. Human resources
5. Finance
6. Operational factors
7. Resources available
8. Nature of the product

Question 3

External influences

Answer 3

1. Competitors actions
2. Economic conditions
3. Legal conditions
4. Social factors
5. Technological factors
6. Environmental factors
7. Market factors