3.

1: FUNCTIONAL OBJECTIVES AND STRATERGIES 1) Corporate objectives: a quantifiable statement of businesss goals which should include measurable targets. 2) Functional objectives: a quantifiable statement of a departments goals which should enable it to contribute to the achievement of the business objective. 3) Functional strategy: the plan by which the department intends to achieve its functional objectives on a day-to-day basis. 4) SMART Targets: Specific, Measurable, Agreed, Realistic, Timebased. 3.2: FINANCIAL STRATERGIES AND ACCOUNTS 1) Cash-flow targets: a financial objective focused on maintaining a healthy cash balance. 2) Cost minimisation: the process by which a business attempt to maximise profits by keeping costs low. 3) ROCE Targets: the minimum percentage return a business strives to achieve from the capital employed in business activities. 4) Shareholders returns: the financial rewards to a shareholder in return for their investment; this can include dividends paid and increased share value. 5) Satisficing: aiming to achieve a satisfactory level of profit.

6) Executive director: a member of the board of directors who also holds a position of responsibility in the business on a day-to-day basis, e.g. a marketing director, finance director. 7) Non-executive director: a member of the board of directors who does not work for the business on a day-to-day basis but sits on the board in an advisory or consultative role. 8) Income statement: a financial document that summarises a businesss trading activity and expenses to show whether it has made a profit or loss. 9) Gross profit: profit after cost of sales has been deducted. 10) Operating profit: profit after all other expenses have been deducted, also referred to as net profit. 11) Gross profit margin: 12) Operating profit margin: 13) Profit quality: 14) Profit utilisation: 15) Balance sheet: 16) Inventories: 17) Total equity: 18) Non-current assets (fixed assets): 19) Current assets:

20) Intangible assets: 21) Current liabilities: 22) Non-current liabilities (long-term liabilities): 23) Net assets: 24) Working capital: 25) Depreciation: 26) Trade receivables: 27) Debtor: 28) Trade payables: 29) Creditor: 30) Liquidity: 31) Current ratio: 32) Acid test ratio: 33) Profitability: 34) Return on capital employed (ROCE): 35) Asset turnover: 36) Capital employed: 37) Inventory (or stock) turnover: 38) Payables (creditor) days:

39) Receivables (debtor) days: 40) Gearing ratio: 41) Shareholder ratios: 42) Dividends per share: 43) Dividend yield: