Chapter 23, Accounting and finance objectives and strategy

Question 1

factors affecting setting financial objectives

Answer 1

• legal status
• size of the business
• other objectives
• budget
• economy
• level of competition
• government

Question 2

Advantages of setting financial objectives for the business and stakeholder

Answer 2

• have targets to aim for
• evaluate the progress of the business
• have access to information
• ## understanding of financial constraints